CPO - Mildly bullish but don't get carry away -3/8/09

After holding around for the past 4 trading days, CPO finally broke up on Friday which triggered another buy signal in the form of breaking above its recent high and the upper Bollinger Band. So far both the MACD and the Stochastic are still holding and a new buy signal has also been triggered by the D+ which has finally crossed above the D-. So by the coming Monday, if price is able to go higher than Friday's high (regarded as the signal day), then you may want to add on to the long positions.

But since the ADX is still falling, so I would not be engaging too much position in yet. You should keep your stops at 2145.


The weekly chart's indicators still offer no bullish reading as both the MACD and the Stochastic are still negative. The only "bright" spot may be of price is still able to hold above the lower Bollinger Band. But I note the ADX is still falling and now find itself at 20's , this may be telling us this market has stuck in another range bounding situation. You should monitor the lower Bollinger Band closely, if prices close below 2105 by the coming Friday, then the bear may be back to bare its claw. Another important item is keep an eye would be the MACD crossing down its zero signal line which is usually very bearish.

So, the current strategy would be maintain long but do not get carried away as the bear is not cleared yet.