KCPO:- Possible Go Test 3,200's -10/25/2010

Prices have been like the Mexican Jumping Beans which have been leaping around the places. This kind of extreme volatility is usually found at the end of a market cycle. But so far the indicators have not confirm this as both the MACD and ADX are still rising and have shown no sign of weakening.  If you want to commit any trade, they should be on the buy side rather than try to go against the trend by selling.

The weekly chart continues to stay bullish as MACD is still rising and it is complimented by a rising ADX.

There may be an item to keep an eye on and that is the ADX is now at 39's. When ADX reaches such lofty level, it could be interpreted as an overbought situation. So I would not want to get too carried away by the high flying prices, especially this market's next target is at  3,200 which is not too far from its current position.