KCPO - The market is dead but stay alert - 16/11/09

Now that everything seems to be in place with each others - The Stochastic and the MACD are positive and pointing up while D+ remains above D-. Most impressive of all is price after triggered my stop and went back up and this time it is able to stay above the prior high of 2250 and also above the upper Bollinger Band. So everything seem to be pointing for a buy again. Yes, true. But there is one very annoying item here remain unresolved is the "dead" ADX which has turned flat at 12.

With the "dead" ADX, I would only buy some but remain extremely cautious and keep the trading small. This time I will place my stop at 2210 which is its recent low. And you should continue to monitor the Stochastic which may get overbought by the coming week.



The weekly chart is similar to what are found in the daily chart. The Stochastic is positive and rising while the MACD has also just turned positive. But prices have so far remained stuck within the Bollinger Band while the ADX continues to descend to 12's.

So again, both the daily and weekly ADX remain at 12's which is considered very direction less. In my opinion, you should avoid trading until a clearer picture emerges. But if you have to trade, then please do not engage a large size position and you should be ever ready to take profit.

The beautifully squeezing weekly Bollinger Band is signaling that a major move may be forthcoming, so certainly you do not want to be get caught on the wrong side of the trade.