Monday, April 28, 2014

FCPO - Buyers Are Still Hesitating - 4/28/2014

The market continues to drift sideway. On last Tuesday price did closed above the top band whcih triggered a new buy signal, but the signal was not confirmed when price failed to go above the signal day high. On last Friday, price did another attempt to go above the top band, but again it failed to close above that level. Meanwhile the MACD stays positive and continues to rise. It is getting nearer to the zero signal line which is giving me increasing comfort. The Stochasti has turned negative but it is above the 50's signal line. The DMI is neutral as both D+ and D- meets each other at 22's. As the D+ stays above 20's, I am a little more bullish biased. The ADX is still falling and with the Bollinger Band continues to tighten, a listless market is still the game master.

A close above 2688 should see the return of  a solid buy signal.

At the weekly chart, we failed to get a reversal confirmation from the Japanese Candlestick after the previous week's inverted hammer. The MACD and Stochastic stay negative and continue to fall, the only "bright" spot is may be the D- continues to fall and it is now at 20's. Any further fall may be confirming the sellers' leaving the market. Price is now caught between the band and I need to see a price closing above the top band in order to get excited on a possible bullish reversal.

FCPO chart resembles that of US Dollar Index chart. Both seem to be waiting for something big to happen.

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