KCPO:- Will CPO follows the USD ? -14/6/2010

During last mid week this market lost its footing and went below its recent support. I sold accordingly as this is confirmed by both the Stochastic and MACD which have crossed down. The most exciting part of all these is probably the ADX which has been flat now has begun to rise.

Since the ADX is now at 25's, I would have to respect its possible intensity. Place stop at 2424.

The weekly chart Stochastic has crossed down into its 20's  while the MACD is within striking distance of  crossing down below its zero signal line. Both of these are usually taken as a more prominent sell signal. The ADX which has been falling has now turned flat, this may be taken as a signal that a trend may emerge soon. But its lowly 14's, whatever new trend will need to do a lot of convincing.

As CPO is frequently linked to the movement of the US Dollar and I think this could  be a cross confirmation that the USD may be heading for a sell off soon. As usual just when 99% of the experts are overly bullish about something, the opposite usual happens.