KCPO:- Upside May Be Limited -1/3/2011

I have bought this market again as price stays above the upper Bollinger Band with a positive Stochastic. Since the ADX remains flat, so I am paying more attention to the Stochastic.And since it is now moving into the overbought zone, I am placing a stop at 3720.



The weekly chart is still as bullish as ever. The MACD is still rising , well supported by a rising ADX. Candlestick is a full white body. There is nothing to alert us on a reversal yet.

 I am taking note of a series of bearish divergences formed at both the MACD and DMI, I feel whatever upside in this market may be limited. Of course I would still flow with the bull as long there is no new sell signal appearing. But divergences usually are warning us that the bulls may be getting exhausted. You should pay attention to this.