KCPO:- Market Gone Sideway So Stay Out -1/31/2011

This market has gone into another range bound situation. The ADX has fallen below 20's confirming the lack of trend. The wiggling DMI is also confirming this. As there is the presence of a nasty bearish divergence and possible Head & Shoulder pattern, together with both Stochastic and MACD are negative ,  I would look forward for new sell signal over a buy .

 

The weekly chart still offer no sell signal. The MACD has turned weak as it has begun to dip its head. But it remains positive. The Stochastic is still above the 80's signal line. Price tested below the top Bollinger Band but managed to close back above the support. Watch 3605 for support.

I would advocate you should stay out of this market for the time being. As the trading margins have been raised substantially . The rest of the world's major markets are still running while we are having a long holiday. With many new political turmoils around Northern Africa and Middle East happening, plus the  EU financial crisis are still lurking,  it may NOT be prudent for us to park in positions over the long holiday.

I also take note that many of major FX pairs seem to be making their major terminal points, this usually mean that there will be major shift in the global economies soon.  One more reason that we should not hold any position over the long holiday.

Here is to wish everybody a safe, healthy and prosperous Chinese New Year.