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FCPO - A New Round Of Selling - 1/13/2014
A new sell signal came in on last Monday as price went below the middle band with the Stochastic turning negative. I sold on the next day when price went below the signal day low. Both the Stochastic and MACD are now negative and falling. The MACD has now gone below the zero signal line which I use to designate the bull/bear cycle. So unless it goes back up soon, I think the bear may has regain control of the market. The DMI has also turned negative on last Monday and now the ADX has begun to rise. This rising ADX is telling us a new cycle has begun.
I am placing my stop above the bottom band and will change to prior day high when if the Stochastic gone inside the oversold zone.
The weekly chart is beginning to favor the bear. The Japanese Candlestick is confirming a sell signal as the current Candlestick is big full black body that engulf both the past week's Doji and white body. By this pattern alone, it is already a confirmed sell signal. And this signal is further reinforced by the negative Stochastic which is now crossing down the 80's signal line. The MACD has also just turned negative and this is also further strengthening the sell signal. The DMI remains positive but the D- has been rising rapidly, this indicates that the sellers are gaining strength. The ADX has begun to fall and it is telling us the prior trend has stopped. The former fractal resistance of 2485 is now the support, breaching that level should see a new cycle of bear.
The market did not go to 2,900 level as per the Fibonacci retracement calculation and the market seems to be going back into another bearish cycle. But I am not giving up on my earlier bullish reading that the market should be in an extremely bullish new cycle YET as there may be still a likely scenario that the market is caught in another large range bound mode. So now the support of 2485 is vital as to determine the bull/bear directions. But of course I will still take any new buy/sell trading signal as it comes.
A new sell signal came in on last Monday as price went below the middle band with the Stochastic turning negative. I sold on the next day when price went below the signal day low. Both the Stochastic and MACD are now negative and falling. The MACD has now gone below the zero signal line which I use to designate the bull/bear cycle. So unless it goes back up soon, I think the bear may has regain control of the market. The DMI has also turned negative on last Monday and now the ADX has begun to rise. This rising ADX is telling us a new cycle has begun.
I am placing my stop above the bottom band and will change to prior day high when if the Stochastic gone inside the oversold zone.
The weekly chart is beginning to favor the bear. The Japanese Candlestick is confirming a sell signal as the current Candlestick is big full black body that engulf both the past week's Doji and white body. By this pattern alone, it is already a confirmed sell signal. And this signal is further reinforced by the negative Stochastic which is now crossing down the 80's signal line. The MACD has also just turned negative and this is also further strengthening the sell signal. The DMI remains positive but the D- has been rising rapidly, this indicates that the sellers are gaining strength. The ADX has begun to fall and it is telling us the prior trend has stopped. The former fractal resistance of 2485 is now the support, breaching that level should see a new cycle of bear.
The market did not go to 2,900 level as per the Fibonacci retracement calculation and the market seems to be going back into another bearish cycle. But I am not giving up on my earlier bullish reading that the market should be in an extremely bullish new cycle YET as there may be still a likely scenario that the market is caught in another large range bound mode. So now the support of 2485 is vital as to determine the bull/bear directions. But of course I will still take any new buy/sell trading signal as it comes.
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