KCPO:-  Side Way But More Bearish Biased - 3/28/2011

 

Yes, again the 20 periods moving average (middle Bollinger Band) acted as a resistance. Price went near it and collapsed again. I took out my positions on Tuesday when it went below Monday's low minus 3 points. And I went back to sell again when prices went below the lower Bollinger Band with the Stochastic went negative again. But the trade is just another short lived one again as price went above prior day high plus 3 points on Friday.

I would go back to sell again if price goes below Friday's low because the MACD and Stochastic are still negative. But remember always to keep stop tight. The ADX has turned flat, so do not expect big moves yet. But since it is at 28's now, any new move should be respectable.

 
 
The weekly chart is confirming more bearishness. Prices has finally closed below the lower Bollinger Band which by itself is a great sell signal. Both the MACD and Stochastic continues to fall. But the continuing falling ADX is not pointing to any big move yet.

As mentioned at the FKLI section, many major markets seem to be near or at their terminal points. So be very careful on this one too.