Wednesday, April 3, 2013

April 03 - FKLI - Parliament Dissolution Day

Hi All.

Writing the post specially to record the anomaly on FKLI, on a parliament dissolution day.

Historically, we plunge at least 10% on dissolution rumors...another 10% on dissolution announcement, another minimum of 10% from dissolution day to actual GE date.
i.e. -- At least 30% plunge from starting of dissolution rumors, through the Election Day.

Well...again, it proves that historical statistics may remains as old as history, & does not necessarily implies that the same scenario MUST repeat itself.
Still, we trade what we see, & should never trade on news, the best is to avoid the volatility on an announcement day (economic data, significant biz/politic new, earnings...any kind of market moving announcements) all together.

Today saw price traveled a hefty 60+pts range, from my channel top to its bottom, then back at the top by close.
I commented in one of the online forums, anyone with a clear mind, without being affected by the dissolution news, could have easily made at least 60-80 points from each of the 60+pts up- & down-swing today. Then, he/she can call the whole April month off, having made an average monthly salary figure within a day's time.
Hate to say that, I was not one of those people today, I still got carried away by the news & incurred some losses today. However, I believe, one fine day, I WILL evolve & join the league... :)

FKLI - Dissolution Day...with a bullish close in Dragonfly Doji (April 03)

Pretty hard to call for a direction tomorrow, after such drastic price action today.

Technically, a Dragonfly Doji points to more upside ahead, especially one with such long a tail. 
A close above the 1,680 level for the first time since Jan'13 also spells bullishness.
However, the all-time high 1,705 peak overhead is going to impost great pressure on the price rally.

Also, despite a close on higher high, RSI still remained below its resistance level. A break above should occur soon if price is to go further up from here.
Momentum averted a close below its overbought line thanks to the post-dissolution news strong rebound. Maintain within the overbought region at close, a sign that bulls are still in control.

All mixed signals, against an 'anarchy' political backdrop....=.... Volatility....

So, I shall keep to intraday play, & stay extra cautious under such chaotic environment.
Let's see how it goes tomorrow.

Stay Sharp!
Careful Hunting !! :)



Related Posts Plugin for WordPress, Blogger...

Books for Traders

Google+ Followers

Followers