FCPO :- It is also about waiting 22/2/2010

The daily ADX continues to fall  and stay below 20's indicating a minor / trendless mode. With this, I would pay attention to the Stochastic rather than the MACD. The Stochastic has already gone into the overbought zone, so I would suggest you should take some profit off the table. For the balance, place stop at 2506 and I would also start selling if price closes below that level.

 

The weekly chart stays almost the same as last week. The MACD remains positive but the Stochastic is not, though it is now trying to do a cross up. Price has managed to close above the upper Bollinger Band again and the D+ seems to be expanding upward. Both of these are of bullish bias. I would watch the D+ to cross up above the red color horizontal line I drawn to mark its prior peak to confirm a new bullish trend. As mentioned last week, CPO seems to be forming an inverted Head & Shoulder pattern which is usually extremely bullish. But I need to see more confirmations on this one.

As last week the market was still in a holiday mood, let's see what the coming week will bring.