FCPO:- Listless But Bears Are Lurking -8/1/2011

 

The market is sinking into another sideway mode as prices go back inside the Bollinger Band. The Stochastic has turned negative but the MACD remains positive. So we have a contradicting pair of indicators. And a flat ADX and a squeezing Bollinger Band are confirming this trendless mode. 

If you have sold the market following price going below the upper band with a negative Stocahstic, then place stop at 3133.

But you should be cautious of the presence of a bullish divergence in the daily chart. I would wait for an agreement for both the indicators before deciding which direction of trade should I would take next.

 

The weekly chart resembles the daily chart as the Stochastic has turned positive but the MACD and DMI remain negative and continues falling. The ADX remains flat. All these confirm a lack of trend. I would need to see price goes above 3164 to feel bullish again.

Meanwhile most of the grain complex tumbled last week. So I am thinking whether they will bring down this market ?