I was checking on today's closing & saw a BEARISH ENGULFING candle at close. Hence, did a quick analysis on FKLI.
Previously, on Dec 24, price touched an all-time high of 1,685.5, albeit closing lower at 1,676 on that day.
Yesterday (Dec 26), we managed a close at fresh high of 1,681.5, the first close above Oct'12 peak of 1,678.
However, today, selling pressure took over late afternoon, pushing price down to close near day's low of 1,675, a first close below the trendline supporting the extended Wave C rally.
A close in a dreaded Bearish Engulfing candle further amplified the bearishness in the afternoon.
|FKLI - Bearish Engulfing signal end of Dec bullishness? (Dec 27)|
I've been waiting long enough to SHORT this dragging rally top, today's candle just gave a reminder for me to start monitoring FKLI again, after being away from the market for over a week.
Anyway, I will be smart enough to avoid a SHORT before the year's close.
I will keep an eye on the price movement & take my position, if any, in the fresh contract month of Jan'13, instead.
Meanwhile, let's watch if the bearish engulfing candle gets a confirmation in the last two days of trading for the Year 2012.
Enjoy the year-end holiday!
Keep Hungry & we shall Hunt again in 2013!! :)