Bollinger band reading : bearish.
MACD Histrogram : turned lower, seller in the market.
Support : , 1286, 1280 level.
Resistant : 1290, 1295, 1300 level.
Comment :
In tandem with major Asia market that traded lower in response to China central bank tightening policy, FKLI ended the first session poorly with ultra high volume changed hand. The hourly chart does look bearish with further downside potential as the Bollinger turned outward in fast pace. But having said that, there is also a possible pullback effect due to price traded a little outside of the lower Bollinger band.
Come to think of the China central bank policy, I was thinking despite it is a bad news for the equity and commodities market in the immediate term but fundamentally it's actually an action taken by the government of China due to the overheating economic condition. In other word, it means that the China economy is in GREAT shape! Don't you think ? Feel free to comment.
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