FCPO:- Are We Looking For A Major Collapse Soon ? -8/30/2010

The market reversed on the last 2 trading days and took out my stop. Though price has closed above the lower Bollinger Band, the Stochastic still has not compliment it. So I would not buy again now. The MACD remains negative. The falling ADX, if continue toward below the 20's  may be hinting for a sideway market ahead. But prices continue to improve and trigger a new buy, place stop at 2538.

The weekly chart Stochastic has turned down while the MACD remains positive. The ADX has begun to turn downward to 15's again. Both confirming another range bound situation. Unless this market manage to break above its recent high of 2737 soon, we may be looking at a triple tops formation which , needless to say, is potentially extremely bearish. And you would notice this formation is accompanied with a bearish divergence at the MACD.

Remember some weeks back when Russia banned export of wheat and the market was burning with stories that food prices will explode. Instead, wheat prices started to fall and as far as CPO is concerned, it certainly does not look that way too. Though we do not have a confirmation yet, but it looks more like a mighty downside is more promising.