KCPO:- Trade the Short Term Bull But Keep An Eye On The Bigger Picture - 13/9/2010

The market continued to move upward in favor of my long positions. You should take note that the ADX remains flat at 21, so this may be just one of those counter trend move. I would keep an eye on the Stochastic as when to clear the positions.  For the moment, both  the positive MACD and D+ over D- favor the bull. Place stop at 2591.

 

The weekly chart's Stochastic continues to fall but MACD remains positive and pointing up. A classic sign of an indecisive market. Then there is the flat ADX to confirm this lack of direction. But since the D+ is above the D-, so I would favor the little bull in the daily chart at the moment.

I am keeping a sharp eye on its recent highs which have formed a triple tops, if market is to go and test those levels again and fail, it may be a huge encouragement to the bears.