KCPO:- Changing direction again ! 24/5/2010

This market is getting tough again as selling stalled after gaping down on last Monday. Price has started moving up and closed above the lower Bollinger Band on Thursday. This effectively stopped out my shorts and turned buy again with the support of the Stochastic crossing up above 20's. I will add more long positions when the MACD turns positive. Meanwhile place stop at 2460.

Please note the ADX is turning down and may fall below its 20's signal line, so be cautious that this may be another one of those mini moves. Be ready to take quick profit .

The weekly chart has failed to confirm any reversal. The Stochatic and MACD are still negative and still falling. In fact a  new sell signal has flashed when the D- goes above the D+. But I would not get too excited yet as the ADX is still falling which mean there is no trend in this market. So I would just act on the daily chart and trade on a short term basis and with smaller lots.

As the weekly Bollinger Band continues to tighten and the ADX stays below 20's since early April, this is another one of those exciting setup with possible explosive moves around the corner. So you should not get asleep at wheel. Though I must admit I am at a loss of  guessing its next possible direction.