CPO - market may go sideway -10/8/09

Prices were able to maintain above the upper Bollinger Band which is a good sign. And the MACD has finally made it above its zero signal line which is added to the overall bullishness. But since the ADX has been falling towards the 20 signal line, I think we should pay some attention to the Stochastic which is now above the 80's overbought zone, so we may see some consolidation or retracement. Place your stop at 2260.

The weekly chart see a positive crossover for the Stochastic while the MACD has begun to turn around but has not turn positive yet. Price may be testing the middle Bollinger Band which is effectively the 20 periods moving average. More bullishness is the D+ has crossed above the D- , so if by the coming week price manages to go above 2357, it will trigger another buy signal. But the weekly ADX has now gone below its 20 signal line, so you may expect this market to be range bounding for a while before the next dominant direction become clear.

Overall, this market seems to be getting more bullish biased. But with both the daily and weekly ADX falling to the low numbers, I would expect this market to go sideway for a while. Keep your trades small until the next major signal comes forth.