Sunday, October 26, 2014

FCPO -  Can Bulls Do It This Time ? - 10/27/2014

Displaying OD FCPO D.png
The market has flashed a new buy signal on last Thursday after coming back from a holiday. Price closed above the bottom band with the Stochastic turning positive. I bought on the next day. The MACD is trying to turn around but it remains negative. The DMI has turned positive but with the D+ and D- stuck within the 20/30 signal line. The ADX also remains flat and stays below the 20's signal line. Both these 2 are telling me that the market is lacking a trend. I would place my stop at the prior day low and see how the market goes . My thinking would be to keep my stop as tight as possible because I also notice the Bollinger Band continues to get tighter. The tightening usually mean there will be an explosive move ahead.

But if price can go further and closed above the top band, then it would warrant a new review. Since the ADX is low and flat, use the Stochastic to trade.

Displaying OD FCPO W.png 

The weekly chart stays almost same as the previous. Both the MACD and Stochastic stay positive and continue to rise. The DMI stays negative with the D- falling again. But then the D+ also is not rising. This means the sellers are chicken out again but the buyers are still staying aside. The ADX stays flat, so there is no new trend yet. The weekly Japanese Candlestick is a white body candlestick but as it did not break anything , so there is no signal from here. I continue to monitor the bottom band support of 2064 as if it is broken, then another new round of correction may  kick in.

As I mentioned last week, if price can go a bit upward or even stay around here, it would continue to add more "power" to a longer term bull cycle. It is not yet there yet, but it is continuing to head for that direction, though subtly.

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