CPO 10/2/09

CPO:-

As we mentioned last week that since the ADX has been falling and now it is below the 20 signal line, the Stochastic matters more than the MACD. The Stochastic has now crossed up its 20 signal line which is giving us the initial buy. And if it closes above 1915, you may want to add on more long positions. Another indicator you should keep an eye on is the D+. We have circled the area where we would like to see the D+ rises higher than its prior peak (marked out with a horizontal line). Once the prior peak is taken out, we should see the return of a bigger bull to this market.

Meanwhile CPO's weekly chart's Stochastic and MACD continue to rise.

It is strange that the NYMEX crude oil's chart seems to be 'waiting' for something big. Will they be leading CPO or vice versa ?