CPO 30/3/09 - Trendless

This market is a tough cookie. The bullish crude oil did not seem to help it to go up. Prices continue to test the previous highs but still it is still unable to break and close above them convincingly. Last week we saw Monday and Thursday when price managed to close above its recent highs but only see it closed back down. The flat ADX continues to confirm to us that this market is not trending yet.

So at this moment I would not do any position trading but just engage day trading. Since both the Stochastic and MACD are still positive, I would watch out for a D+ to go above its prior peak as marked out by the horizontal line or a closing price that can maintain above its prior highs for at least 2 consecutive days.

The weekly chart continues to confirm the lack of trend in the daily chart as the weekly ADX is still falling towards its 20 signal line. While the MACD is still rising and goes nearer towards its zero signal line, the Stochastic has already gone into the overbought zone and looks like it may cross down soon. I would advise you should sit aside and watch for a longer time before decide the next course of action.

But since this market has been testing the upside for so many times and so far failed to break up, I am getting worried that its next course of direction may be a big down move.