KCPO:- A Temporary Bottom Reached ?- 07/04/2011

The market continues to fall last week as MACD is still falling with the ADX raging upwards. The question now is : will the market falls further ? As at last Friday, the market may has formed a double bottom around here. This is of course, NOT implying that the market must stage a rebound from here. But I would advocate placing a stop above last Friday high plus a few points to protect profit. After which if the market really does a rebound, I would then decide the next course of action (like entering a short term buy)

 

The weekly chart remains bearish as both the MACD and Stochastic continue to fall. The negative DMI has also begun to expand outward, this is indicating the bear is gaining strength. The next level of support should be at 2925.

It would be interesting to observe whether this is the beginning of an end to the decade long commodities bull markets.