CPO - 22/6/09 - The bull is dead ?

You should pay attention the rising ADX which I mentioned a component needed to empower the sell signals flashed earlier. The rising ADX has now crossed up the falling D+ which is usually taken as a major sell signal. And the ADX can continue to rise, then we will be able to ignore the oversold Stochastic. A MACD which is below its zero signal line and prices fall below the lower Bollinger Band mean this market is more bearish.


Whatever bull left in the weekly chart last week is also fast losing ground as the Stochastic continues to fall and the still positive MACD has continued to dip its head and we may see a negative cross down by the coming week. The weekly ADX is also continuing to fall which is confirming the prior bull trend may has ended.

Place your stop to protect the short positions at 2385.

Last week there were some talks in the local media telling you how the El Nino climatic effect would boost the CPO's prices. It sounds logical. But then they forget that the effect would not affect crop immediately and most important of all is that markets have never been 'logical". It is always about perceptions of the players.