KCPO - Bulls Losing Steam But Still Fighting -9/2/2012


The market corrected some more before making a new attempt to continue its prior trend. But I need to see price closes above the top band before I get assurance that the bull is not defeated. But if price goes below the middle band then the bullish technical rebound may be over faster than I think.

The MACD stays positive but the Stochastic has crossed down its 80's signal line. And with price gone below the top band, it has already flashed an initial sell signal. But I would need to see price goes below the signal day's low of 3000. The DMI has begun to tighten which is showing the bulls are losing strength. The ADX has also begun to fall which is confirming the prior trend of up move may has ended, at least for the time being.


 
The weekly chart's Stochastic continues to rise while the MACD has gone positive but the DMI stays negative. Though I am still unable to get a more assuring bullish signal but with the 2 positive indicators and prise stays above the lower band,  and I am still get encouraged by the double bottoms formation and the bullish divergence at the Stochastic. So I decided to take side with the bull for now. But since the ADX has gone flat again, it would mean we may see th market drifting awhile before we see the bull begins charging.