KCPO:- Trade On A Short Term Parameter 22/3/2010

The market continued to fall on last Monday , then held on there and then staged a bounce back on Friday.  Since the ADX has remained flat and below 20's level, I would pay more attention to the Stochastic which has now gone into the oversold zone. Other than that item, MACD continues its fall and may fall through its zero signal line; the D- is above the D+ and the Stochastic is still falling, all added to a bearish reading.

I would hold on to the shorts position and place a stop at 2585.

 

The weekly chart is turning negative as price has now closed below the upper Bollinger Band and the Stochastic has turned negative. This is flashing the first sell signal. The MACD though remain positive but has started to hook down. The weekly ADX has turned flat again which is telling us the prior smallish up trend has ended.

Since there is no major signal at the weekly chart yet, I will just trade the daily chart on its short term signals which is now on a sell mode. Watch the stops and be ready to switch side again since the daily ADX is low.

Since last Friday the USD is on the move again, it will be quite difficult to see KCPO going up now.