On the left daily chart, FKLI is forming a head and shoulder like formation which seen recent high 1807.5 almost symmetrically to Aug high. The formation was not confirmed and will be invalid if price make higher high and price did not fall below 1764.5. Daily ATR (Average True Range) seen FKLI daily range at 6 months low. Intra day trader may found difficulties on intraday trading if the range continue to congest.
As the daily chart suggest, the correction in intraday is expect to be tightening range if without breakout. The current ATR in 30 minutes time frame at only 2.5 points. Current price resistance at 1800, price above 1800 may see expanding range. Sideway range between 1799 to 1787.
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Price has failed to make higher high and break down from the range, FKLI is approaching 1774 in the short term. In a bigger picture, price is building a right should formation.
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Price reached intraday low 1774 as expected. Dow drop 0.44% from Friday 5pm and Nikkei futures drop 0.3%. FKLI is expect to continue to sluggish and retest head and shoulder neckline 1764 (please refer to left chart formation, play forward to view current price structure).
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FKLI have reached 1764 as mentioned. Break down the current price zone may see further selling which the head and shoulder formation will be confirm.
Given the formation length 62 points from head to neckline. The formation projection target will be 1700.