KCPO:- I Am A Bit Bearish Inclined - 19/4/2010

This is really becoming a tough cookie as prices still whacking around without any real confirmation of a new direction. The ADX remains flat and so is the MACD limping forward flat. Both the Stochastic and MACD have gone negative which is telling us to keep an eye on the short side for the current time. I have drawn 2 horizontal lines to mark out the current range , breakout on either side may warrant more attention then. And I have also drawn a horizontal line at the D- peaks, if the next D- spike goes above the line, that may be confirming the return of a new trend.

Both the weekly chart indicators continue to deteriorate. The Stochastic may be falling through the 50's signal line which usually confirming a more concrete sell signal. You would want to keep an eye on the MACD too as it is already falling near its zero signal line, which is another major sell signal. The weekly ADX continues to stay flat which is reciprocalling the tightening Bollinger  Band, i.e. no trend in this market. As I said severally times  previously - the tightening Bollinger Band is so sweet. Big profitable move is ahead. So stay awake and sharp.

Someone were saying how the coming appreciation of the Chinese RMB , the exceptional weather, crude oil to hit 99.00 etc will bring CPO to 3,000, I personally do not really give a damn about these kind of stories which usually sound "logical" but almost never  play out. I only believe what I read from the charts. Frankly at this moment I cannot make out what this market wants to do next . On one hand there could be an inverted Head & Shoulder pattern which is super bullish. Then on the other hand, there could be an imperfect double tops pattern (8th. January high and 12th. March highs) which is super bearish. So again, I have to say this:- Let's wait out for another 1-2 weeks to see what happen next. 

But with all the daily and weekly indicators pointing down, I am beginning to get a bit bearish inclined.