July futures closed lower by 15.0 point at 1380.0 on relatively high volume of 12,839 lots.
1. Despite the fall, we are maintaining long as sell-stop is not hit.
2. Our sell stop remains at @ 1367.0 OL.
3. Further buy @ 1396 OH.
4. Expect upside target at 1466 to take profits.
General commentary: Technical indicators are still bullish in spite of yesterday’s correction. FKLI is now AT the upper Bollinger band suggesting that FKLI is still bullish. Any break above 1395.5 is a “further buy".
Upside Fibonacci target 1466(Revised on June 15)
Downside targets: 1333/1294/1257/1212
Ichimoku chart: (Based on Kumo (clouds) FKLI is still long. Kumo support is at 1206. Ichimoku chart will turn short at 1205 OL)
(Updated on June 11, 2007).
Average True Range for KLFE: A.T.R. is 17.71 points for FKLI futures. This implies you need to put a stop above/below this A.T.R. or you can get stopped out due to the volatility factor. We advocate a 1.5 x or 2 x the ATR. We are using a 5 days ATR.
