Mar05-07 - FKLI

Hi All.

I did some charts yesterday after market close. Was not able to get it posted before I went out for a dinner. Ooops...

I figure it may still help as of now, so let's give it a quick look here.

Mar 05

Following my short comments on Mar05 morning when market gapped right up to 1,640 & breach through it during the intraday price movement. The day eventually closed flat in a doji, which i saw as a continuation signal, rather than showing indecision, because it corrected the slight bearish sentiment from the two preceding retracing candles.

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Mar 06

Saw a solid open above 1,640, & subsequently develop into a long green day & close just shy of the 1,657 resistance.

As of now, sideliners will be tempted to chase the rally, most probably regretting not going in earlier. Its true because I myself received a lot of grunt & complaints yesterday about missing the breakout rally from 1,640.

FKLI - Breakout from 1,640 confirmed. 1,657 may hinder price rally (Mar 06)

 

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Mar 07

These regretting mindset will cause them to jump into the boat at any price available, which will cause price to spike at next day's open, where smart money will take the chance to profit take & fade the gap.

True enough, we opened high at 1,657 just now, peaked at 1,659.5. Now we are looking at what look like an exhaustion gap being covered, we are back below 1,650 support. 

On the daily, its now a temporary dark cloud cover, with the daily uptrend line support right at 1,647, near current day low.

Whether we will see a break below the daily trendline, remains to be seen.

However, a fibo retracement line plotted from 1,659.5-1,650 range gives a projection target of 1,644 (fibo 1.618), followed by 1,634.5 (fibo 2.618).

Temporarily, we are on a bearish tone for today. The close will be crucial to see if its a mild retracement day, or a solidly bearish reversal day.

FKLI - Temporary Top at 1,659.5. Neckline at 1,650 broken, Bearish (Mar 07, 1150h)

That's all for now....
Happy Hunting!! :)