CPO - The bear is still lurking around -26/7/09

As I mentioned last week even when the MACD is positive but if it is relatively 'far' away from its zero signal line, it is usually not a reliable buy signal. As it turns out to be such case for CPO. It did not really go anyway and got stuck within the Bollinger Band. Though the MACD and the Stochastic are still positive and continue to rise, the D- is still above the D+. What I would suggest you to do is place your stops at 2029 to protect your earlier longs positions and to add on more long positions if price goes above the upper Bollinger Band at 2194. But since the ADX has turned flat, there is a chance that this market may get stuck in another range bound situation.


The weekly chart is still bearish as both the MACD and the Stochastic are negative and continue to fall. I would pay attention to both of these as MACD is fast approaching its zero signal line and the Stochastic is also falling near its 20 signal line. If they are breached , we may see a renew selling forces coming out. Another item you should keep an eye on is if price breaks below the lower Bollinger Band again which may bring forth more selling.

Summarily you should maintain a bearish bias on this market unless price can clear above its recent high at 2184.