FCPO - The Rebound Losing Steam But There Is Hope - 6/23/2014

 

The rebound has been losing steam for the last 2 days. Though the MACD and Stochastic continue to climb but the DMI has begun to "wriggle", so I think the market may get bogged down in another range bound mode. The ADX continues to fall, at leastt that is confirming the prior trend has ended. I would need to see price breaks above the top band to get a confirmation that the rebound is intact.

 

The weekly chart continues to stay in favour of the bear. The MACD, Stochastic and DMI remain negative and price stays below the bottom band. But there are a few "bright" spot for the buyers , there is the 3 white body Japanese Candlesticks formed in the chart. They are not big enough to called "3 white soldiers" but no doubt it is still a sign for a possible reversal, especially they are getting nearer to the bottom band. The Stochastic is now inside the oversold zone, though it has not turned around. The most interesting "bright spot " would be the DMI, the D- has turned down from above 30's, this is telling me that the sellers have been quitting their shorts positions. The D+ has begun to rise a bit, not enough to go above the 20's yet, but it is still a good sign that the buyers have begun to come back.

The technical rebound has not gone as smoothly as I want, but the bull seems to be building up their resources to make a decent comeback. So be patient.