KCPO:- Expected More Smallish Moves - 7/25/2011

Price finally made it above the upper Bollinger Band and above recent fractal high on last Wednesday, and both the MACD and Stochastic stay positive, but as the ADX continues to fall, so we still fail to get a strong upmove. Since the Stochastic still has not reached the overbought zone, we may expect some more up moves.

The weekly chart remains bearish biased as the MACD continues its fall and DMI is still negative. Though price went up to test the lower Bollinger Band resistance, but it failed to close above it. A simmer bullish spot would be the Stochastic has turned positive, but we would need to see it crossing above the 20's signal line in order to have a fighting chance for any emerging bull.

In the short term we may see a few more days of upside. But this market is like many of the other commodities markets. They seem to be waiting for some flesh leads from the US debts ceiling and PIIGs crisis before embarking for the next major move. So meanwhile maybe you should be sticking to day trading.