Saturday, May 23, 2009
CPO - 25/5/09 - More selling may come
As I forewarned here last week on the bearish divergence on the Stochastic and the MACD, prices just tanked from 2,700 to 2,500. As the Stochastic has just crossed down its 50 signal line and price just may crosses down the lower Bollinger Band in the coming week, all of which are triggering new sell signal.
Another new trigger sell signal would be the D- may be crossing above the D+, many intermediate term traders will sell on the following day when that happens when price goes below the signal day low.
The weekly chart still fails to confirm the daily bear moves as the MACD is still rising and prices remain above the upper Bollinger Band. But the weekly ADX has turned flat which is telling us the prior trend has stopped for the time being. The initial sell signal coming from the weekly chart may be the Stochastic crossing down its 80's signal line and price crosses down the upper Bollinger Band of 2,450. These should be new sell signals and shall compliment the current sells in the daily chart.
Place your stops at 2,630 in case the market act up against you.
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