Sunday, March 1, 2015

FCPO -  A New Buy Signal - 3/2/2015

Displaying KCPO d.png 

The market continued to drift between the top and middle band during the pre-CNY holiday and then it went below the middle band for a day. This actually triggered a new sell signal which was also met the filter rule on the next day by going lower than the signal day low. But as in the case of a listless market mode, the signal proved to be another one of those false moves. Price quickly recovered on the same day and closed above the middle band forming a white body Japanese Candlestick. My experience tells me to place a stop at above the day high immediately on the following day as to limit losses. Price continued to move higher and went back and closed above the top band on last Friday. Both the Stochastic and MACD confirmed the new buy signal by turning positive. So by the coming week I would buy again if price can go higher than 2321. Please note that the MACD is still above its zero signal line, so the buy signal is more meaningful than the sell signal.

The DMI has also turned positive but the ADX remains "dead" by staying below 20's and flat. This means there is no new trend yet.

Displaying KCPO w.png 

The weekly chart will still has to be read as a listless market because we are still having a pair of contradicting positive MACD and negative Stochastic. Of course the positive MACD is now becoming more significant as it has successfully crossed above its zero signal line. This would means the market is back to a bull cycle. Price went down to test the middle band but managed to climb back up and closed above the top band. The Japanese Candlestick is known as a long lower shadow and since it went down to test the middle band support, so I would be a bit bullish about more possible upside moves to come. The ADX continues to fall and it has now sunk to 15's. So this further confirms the listless mode mentioned earlier.

Displaying kcpo M.png 

The monthly chart has been my "secret lover" for the past few month as I have been waiting for a positive divergence to form. I think it is now beginning to show result. The Stochastic has turned positive and rising while price has closed above the bottom band. Both these 2 are offering an initial buy signal. So if price can hit  higher than 2354, it would mean the buy signal is confirmed. The MACD has been turning around, but it is still negative now. If it can turn positive by the coming month, I would turn even more bullish inclined as this would mean a bullish divergence has successfully formed. This is of utmost importance for my "Beginning of a  new bullish cycle" theory to gain strength. Of course I am still hold some cautious thoughts as the MACD is still below its zero signal line. The DMI stays negative but with the D- continues to fall. This means the sellers have been leaving. But the D+ is also falling, so this means the buyers are not in the game yet. With the lowly flat ADX below its 20's, the whole DMI indicator is telling us this is another listless market.

The crude oil chart has been forming a bottom consolidation and its chart continues to excite and thrill me more and more intensely. I maintain the crude oil's next shock and awe rally should bring some goodies to FCPO market. I just have to be a bit more patient. 

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