KCPO - Be ready to take profit - 21/12/09

This market staged another up move by breaking above the upper Bollinger Band . Take note  that though the Stochastic has only confirmed the buy on the next day, but so far the MACD has not offer a similar confirmation. But at least we have the ADX rising again.

It is now within striking distance of our next target of 2650. So I would NOT be engaging a large position at around here. Place stop at 2560 or 5 ticks below last day's low to protect your profit.

The weekly chart is still as bullish as ever. Prices remain above the upper Bollinger Band and both the MACD and the  Stochastic remain positive and continue to rise. Maybe you would have to watch out would be the Stochastic has now gone into the overbought zone. The weekly ADX has also been rising which may cross up the falling D- soon. I usually take this type of crossing up as a more bullish signal than other types of cross ups.

Summary:- the weekly chart is getting even more bullish than ever, but the daily chart does NOT look so as it is already near its next target. So I would get ready to take whatever profit on the table and wait for the next signal which may offer more assurances for the bull to continue onwards.