KCPO - Buy again but keep cautious 4/1/2010

Just as I warned of possible further prices pushes up before it collapses, the market went back up and hit my stop last week. Again you would notice the MACD is not reacting the same when price is going up. But if you have bought in again when prices closed above the middle Bollinger Band with the Stochastic crossing up, then keep stop at 2595. But I would suggest that you should take profit whenever appropriate (like when the Stochastic entering the overbought zone).

As long as the bearish divergence stays intact in this chart, I would not get too bullish about it. But since the MACD is still relatively "high" from its zero line, so I do not expect the market to "die" so swiftly. But we should always acknowledge its presence and stop getting too overly bullish regardless what others say.

 

The weekly chart is still as bullish as ever as price maintains above the upper Bollinger Band. The MACD is still positive and rising. Though the Stochastic may be a little "overbought' now, but we must take note the ADX is still rising which is confirming a trend has formed.

So again as in the previous weeks, the weekly chart is bullish as ever, the daily chart has again turned up, so we would move with the trend and buy the market.