KCPO - Stay with the bull, for the time being -7/12/09

This market did not go any place until on Friday when it gained 84 points. There is nothing much to say about this except maybe the ADX has risen to 37 which is sometime considered by technicians as overbought. But as I have always say here - market may be 'overbought' but they can remain so for days/weeks to come.

If it had not able to break above 2521 ,this market would have been doing a  potentially double tops (26/11 and 13/8/2009) . But since it has successfully closed above that level, its next resistance will be at 2650 and 2799.

The weekly chart is nothing but bullish. The MACD and the Stochastic both continue to rise. Prices stay above the upper Bollinger Band. And most encouraging item would be the rising ADX which is telling us a trend is in place.

So stay with the bull as long as  prices stay above the upper Bollinger Band. Place your stop at  2490.