CPO - 1/6/09 - May get choppy

During the beginning of last week, more selling did came out and push price all the way down to 2350. Then it started to recover and recouped 200+ points. If you have not take out all your shorts out when price went back and cross up the lower Bollinger Band, then you should do it when market opens on the coming Monday.

Now with the Stochastic has crossed up its 20 signal line and price closes above the lower Bolinger Band, you may want to engage some long positions, but keep a tight stop at 2505 since the MACD has not confirmed a buy yet. And revert back to sell if price crosses down below the lower Bollinger Band again as the MACD is still negative.

The weekly chart's ADX has started falling which is confirming the end of the prior bull trend. This could be the end of it or at least a temporary end to it. The MACD is still positive but has begun to lose steam while the Stochastic has begun to fall. It would be vital to monitor whether it will cross down its own 80 signal line which usually is the initial sell signal. An interesting item is the price where it did went below the upper Bollinger Band during the week but somehow manage to close back up above it, thus rendering the weekly sell signal void. So my conclusions are :- 1) watch the Stochastic whether it will cross down its 80 signal line and 2) whehther coming Friday's closing price will go below the upper Bollinger Band - both will confirm a new sell signal.

But I take note of the fast falling daily ADX which may soon go below its 20 signal line. this could bring CPO into another sideway situation before any new direction is to take effect.