Hoo-ray FKLI did achieved a record high as anticipated in our FKLI Dec Part 3 Outlook. The record high was 1852.5 on Thursday 19 Dec. Congratulations Trend Followers who made it this far and exited around 1852 or exited at trailing stop 1834. That being said, observe the market for the 4th week of December and follow the trend accordingly.
FKLI currently at juncture and good traders need to be flexible to follow the price trends, hence there are 2 plans for this week. If Day MACD forms a deadly cross, FKLI will have a bull market correction 1824 support zone. If Day Yellow-Red moving average also have a deadly cross, market could have a strong bull market correction to 1810 support zone.
In contrasts, if day MACD fails to form a deadly cross & daily prices close higher, this means FKLI will go back to a bull market rally mode and consequently FKLI could retest 1844 or 1853 resistance zone. For support/resistance zone, kindly refer weekly chart 2 below.
That being said the market is not going to have a crash or bear run. This is because FKLI still in a yearly bull run mode as it is still trading above weekly red moving average (refer Chart 2 above). In addition, weekly MACD still in golden cross, which means in the FKLI still in a very strong bull market rally mode for the month and possibly the month ahead.
FKLI will have a very strong bull market correction if prices are below weekly 1810 support zone and MACD forms a deadly cross.
The opinions and information contained herein are based on available data believed to be reliable and for educational purposes only. It is not to be construed as an offer or solicitation to buy or sell the securities covered by this report. No individual financial strategy or goals have been taken into account in the preparing of outlooks. Readers should seek independent advice from author for detailed analysis.
(Futures commission broker & equity remisier, Contributor of futures market trend following)