KCPO:- Take profit first 15/2/2010

Both the MACD and the Stochastic have been rising. The MACD is now crossing its zero line which is usually a more bullish signal, but as the ADX has been falling (means little trend) and now it is now crossing down the 20's signal line which is now adding more weight to a sideway or smallish trend mode. So I would
pay more attention to the Stochastic which has now reached the overbought zone. You should also take note that it had reached 2594 which is near to the 61.8% retracement level. So I would place stop at 2542 to protect profit. Sell new shorts at 2540.

 
The weekly chart is confirming the lack of significant trend in the daily chart as the Stochastic keeps falling while the MACD stays positive. The 2 main indicators are contradicting each others. The weekly ADX is still flat and below the 20's signal line. I have marked out a short horizontal line marking out the prior peak of D+, if the the D+ goes above this line, then maybe we should see a trend formed. By then we should see price crossed up above the upper Bollinger Band which should provide a new buy signal.

I cannot say for sure what is going to happen to CPO next. But I notice there may be a possible massive inverted Head & Shoulder Pattern in formation. This is usually an extremely bullish formation. But this cannot augur well with  the current strength of the USD. Maybe I would wait for another 1-2 more weeks before educatedly trying to read what would its next move.