KCPO:- Nothing Happens Again, For The Time Being -1/6/2010

As I suspected last week, it turned out to be another of those mini moves. If you had applied the yesterday low minus 2 points system, you would at least kept some profit. If you applied my stop at 2460, you would had incurred a small loss. But that is part of the trading game and this kind of thing happens all the time when the market is in a sideway mode.

The MACD remains negative while the Stochastic seems to be turning down again. Price may be above the lower Bollinger Band, but with the D- is still above the D+ , we are not getting any concrete signal to buy again. I also take note that the ADC continue to be flat which is telling us there is no or little trend in this market. So what I would do is to draw 2 horizontal lines to mark out its previous range and look for any breakout from this range before deciding the next course of action.

Both the weekly Stochastic and MACD continue to negative and falling. A word of caution here:- pay attention to the MACD is fast approaching its zero signal line, if that is breached, it would be a very significant sell signal. The falling ADX which is now at an extreme lows of 15's and the continuing tightening Bollinger Band are both confirming the lack of trend here, BUT they are also warning us that an explosive move may be on its way. So you should keep an eye on this.

I cannot find any major bullish or bearish formation in both the daily and weekly chart, so I cannot really say what is going to happen next. But if I am to force on a theory, maybe we can say there is an imperfect double tops formation, so if that is the case here, then we should pay more attention to the sell side.