Price is currently on a correction within a longer term uptrend. We believe long term trend is still up as:
1) FKLI yet to chart lower low since May, it is not even below Oct low of 1470
2) Still above its 20 week moving average (chart 3)
3) Yet to make significant bottom since May
However, on the short term basis, price is trending lower. It is clear from chart 1 that price is making lower high of 1510, 1506 and 1500 (also near 21 day moving average). Nontheless, supports isn't too far at 1480 and 1470. Price is unable to trade below 1480 for a significant amount of time and at both times rebounded off October low of 1470.
Therefore, we believe that clear buying power will not be evident until price trades above short term resistance level, and especially with a close above 1510, despite the holding of support levels. Alternatively, one can also monitor the rectangle 1500 - 1480 level which forms the weird shoulders, and trade support and resistance. As such, expect downward pressure to continue on close below 1480.
Note too taht the sideway move of RSI and stochastic too suggest that a complex consolidation, not signaling an end of down movement yet, contrast to the V shape bottom of Aug, Sep and Oct.
On cycle basis, price seem to move away from prior 28 day cycle but the 32 day upmove from Sep was probably long enough to suggest that we are still in up cycle configuration.
Fibonacci retracement of level of May - Nov move is 1350 (61.8%) and 1420 (38.2%).
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