KCPO - Something big happening soon -9/11/09

We now have both the MACD and the Stochastic turning positive and rising , and even though price had broken above its prior high of 2250 but it has not able to close above that level.

The ADX has now turned flat at 14's which is telling us there is no trend in this market. As in the weekly chart, the daily chart Bollinger Band has also begun to tighten. So you should apply the Stochastic instead of the MACD to monitor and to trade any signal.

If you have bought in longs contract earlier, place your stop at 2227.


The weekly chart's Stochastic has turned positive and moving up while the MACD has turned around but remains negative. Prices have remained within the Bollinger Band for the past 3 weeks. And the falling ADX to 13's is confirming this total lack of direction. You should also pay attention to the squeezing Bollinger Band which is forewarning you that a dramatic move is coming soon.

Summary:- Both the daily and weekly Bollinger Band have started squeezing and the both the daily and weekly ADX are at and near 14's - both these are telling us something BIG will happen soon. But the question is :- how soon ? and which direction ? I think it would be prudent for us to watch this market for another week or two before drawing a conclusion. Whatever the result, it is going to be a highly profitable trade.