KCPO - Bears Strike And Crashed Support- 9/24/2012



I sold again when price broke below the lower band and I must admit I was surprised what followed the next few days. I am now placing a stop at prior day high plus 2.  Please take note that the ADX has begun to rise which is confirming a new trend in making. The current move has erased the earlier double bottom formation , thus wiping out all my bullish opinion.


 

Weekly chart's MACD is falling but the Stochastic keeps rising but price has plunged through the bottom band support while the ADX rises again. So this may be signaling the beginning of a new round of selling.

What is happening in KCPO now is another real time example that "logics" do not really work in the financial market. The fundamental 'experts" have been predicting the introduction of QE3 will boost prices in stocks and commodities. So far this is not the case.