KCPO:- Maybe The Beginning of A new Bull Phase ? -4/25/2011

 

My last sell trade turned out to be just another short lived play as ADX stays dead. Market took out my previous high plus 3 again on Wednesday and triggered another new buy on the next day when the Stochastic turned positive again. Again I would not get too carried away because of the lousy ADX. I would place stop on previous day low minus 3.

Both the Stochastic and MACD have turned positive , I would like to see price closes above the upper Bollinger Band and the MACD goes back above its zero line before getting a bit more excited. Of course the currently 'dead' ADX needs to get its head up. With no new trend in this market yet, I would watch its previous high of 3454 as its immediate target.

The weekly's falling ADX seems to be telling us that this market is going nowhere. Prices seem to be getting support at 3210's level. I would like to see a clear break down from there in order to get a confirmation on the bear cycle. Meanwhile I am also keeping an eye on the the Stochastic which seems to be trying to turn around.

Summary: the daily chart may be doing a short term up move while the weekly chart is still undecided. If prices can go and stay above 3454, maybe  we can see new bull phase in this market.