Sunday, June 8, 2014

FCPO - A Technical Rebound May Be Just Around The Corner ? - 6/7/2014

The last sell signal has been good and the trade is still in. I continue to place stop at above the bottom band. The MACD remains negative but seems to be trying make a turnaround. The Stochastic has turned positive but it is still below the 20s' signal line. The DMI stays negative and the ADX is now above the DMI. This is most probably the most encouraging sign for the dying bull (whatever remain of them) as this is the best confirmation of an oversold market. With this, maybe we could see a technical rebound soon.

The weekly chart remains bearish biased. The negative MACD continues to cross over downward below the zero signal line. The DMI stays negative with the D- crosses above the 30's signal line. Both are indicating the sellers are still strong. The ADX begins to rise from below the 20's signal line. This may mean the beginning of a new cycle. The Stochastic is now inside the oversold zone and seems to be turning around. Usually it  is not something to get too excited, at least not yet. But there is an interesting development here, the weekly Japanese Candlestick is a Doji Star. This  usually mean a reversal may be coming next. Of course we would need to see a solid white body Candlestick appearing next in order to confirm a reversal.

At this stage of time, there seems to be a technical rebound coming around the corner. But there is still nothing exceptionally bullish in the charts to get ourselves too excited. I would just trade the next signal, that's all.

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