KCPO - Market May retrace Or Go Sideway - 2/11/2013

After the previous week's strong upmove, the market decided to take a rest and went sideway. This is most probably due to the long Chinese New Year holiday ahead and traders do not wish to take their risks home. I am using the top band as my stop at 2530.

Both the MACD and DMI are positive while the ADX continues to rise. This is confirming the trend is still intact.  But the Stochastic has turned negative, but it remains above the 80's zone. So we should expect some retracement or sideway moves before the market resumes its prior trend.

The weekly chart's Stochastic and MACD are still climbing while the DMI continues to close up its gap. Price manages to close above the top band which by itself is a new buy signal. But the Bollinger Band is tightening, this is telling us the market is going sideway. If I am trading this chart, I would only buy if price goes above this week's high as a filter.

We may see more sideway move in the coming week as most traders would not be back to work yet.