CPO gapped down last Monday but reversed upward for the rest of the week. You would had closed out all your shorts positions when price closed up above the lower Bollinger Band on Thursday. The daily ADX has turned flat confirming the prior bear trend has temporarily stopped. Since price manages to close up above the lower band and it is complimented by the Stochastic crossing up above its 20 signal line, it offers an initial buy signal. But since the MACD and the DMI still remain negative, you should keep your stops tight at 2290.
The weekly MACD is still positive but may turn negative soon. When that happens, it will confirm a new sell signal. Meanwhile the Stochastic continues to fall.The most damaging perhaps is the D- has now crossed above the falling D+ which is really bearish. By applying Wilders' extreme point rule , if the coming price goes lower than this week's low of 2149, then another sell signal is flashed .
Since the weekly chart is more bearish biased now, so I would pay attention to any new sell signal in the daily chart and weight lesser on a buy signal.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.