Price is taking its time getting to daily resistance zone we have been watching, so it is logical to assume that the current downward move is a pullback, where there is an opportunity to go long. At the very least, it should provide a relief rally, after the recent slide.

Here is the current hourly chart:

August 14th 2018 FKLI Hourly Setup.jpg

Price has just activated its Blue Box at 1761.81-1769.55. It is now a question of entering if price breaks much higher, providing a trigger into the long trade. From a pure price reading perspective, a break above the previous candle (the white pin bar) would suffice. A trader who chose to take this entry would receive no argument from me.

However, my own trading plan requires a confirming condition, which has not occurred yet. It will likely result in a poorer entry in this case, and at times like this there is a temptation to jump the gun. However, rules were created for a reason, and I will stick to mine.

Good trading!

Kaye Lee
Head Trader Consultant