KCPO:- Market may lose direction - 12/27/2010

 

The correction was a shallow one, it did not even reach the 20 days moving average (middle band). My stop was taken out last Thursday. The Stochastic has now turned around but price has not close above the upper band, so I would wait for 1-2 days before buying again.

As the ADX remains flat, I would pay attention to the Stochastic for trading signals. I also take note that the Bollinger Band is fast tightening, this may tell us the price range may get smaller and there may not be any new major direction soon.

                     

The weekly chart has not changed much as price stays above the upper Bollinger Band and the MACD stays strong while  the ADX is still rising. The Stochastic remains above the 80's. All these are telling us the bull is intact. But I notice there may be a subtle sign that the bull may be losing its mojo as the D+ has failed to register a higher peak with a new high in prices. Though it may not necessarily be something for us to run for a nuclear shelter yet, but it may be one of those early signal that we should not get too carried away with all these super commodity  bull talks that have been going around these days.