KCPO: - Something Big Is Coming 5/4/2010

 

Last week as all the indicators were falling into place and I was so confident that new bear trend is in place, then the market sideway for a while and then turned back upward to take out my stop on Friday. As price has now crossed above the lower Bollinger Band and with the Stochastic also crossing up above its 20's signal line, I would engage an initial long again.  Since the ADX has turned flat again, more attention should be paid to the Stochastic at this moment. I would only engage more position when the MACD turns positive. This is also noting the D- is still above the D+ which mean the bear is still around. Place stop at 2633.

 

The weekly chart remains bearish as both the Stochastic and MACD are still falling. With the weekly ADX has started falling again and prices remain inside the top and bottom bands, I think it will safe to conclude this market is caught in another tight range bounds. We should also pay attention to the tightening Bollinger Band  which is usually foretelling that a massive move is ahead.

So at present, just stick to small trades and wait for another 1-2 weeks to see how the weekly chart develops in order to capture the next big move.