KCPO:- More Wait And See - 10/4/2010

I halfheartedly turned long on last Monday. As I suspected, the market did not go anyway in particular.
Both MACD and the Stochastic stay upward and price hold above the upper Bollinger Band. Even the ADX has started to tilt upward. But 2733 remains a tough resistance. I would be more convinced of a real bull market if this market can close and hold above that level for at least 2-3 days.


I am keeping my new stop at 2715.

 

The weekly chart's MACD and Stochastic are still rising and prices maintain above the upper Bollinger Band which are confirming that the market continues to be bullish. It is except for the fact that it is still not able to close above that dreadful 2733 area. Beware that the Stochastic may be entering the overbought zone soon.

So to sum it up:- the bearish divergences are there; the 2733 resistance level has been a tough cookie to crack; market indicator may turn into the overbought situation soon. Therefore I would be more bearish biased than otherwise. I would need a convincing closes above 2733 to rethink on my bearish bias.