KCPO:- More Listless Market ? -4/4/2011

 

 

The market has gone into another listless drift again. The ADX has begun to fall again as prices stopped falling and gone back above the lower Bollinger Band. I have engaged new shorts on last Tuesday when price went below the previous low, but the trade turned out to be unprofitable as prices went back up above the lower band and the Stochastic and MACD have also turned positive. So I was forced to closed out the shorts and took a loss and turned back to buy again.

 And again the 20 periods moving average has proven to be a strong resistance as price has again repulsed from that level on Friday. Since the ADX has started to fall, I would keep my stop tight by using 2 -3 points below previous day low.


                                

The weekly chart remains bearish as both the Stochastic and MACD continue falling. Prices stayed below the lower band and DMI is also negative. All are pointing for more selling to come. But since the ADX continues to fall, I do not expect any forceful trend yet.

The overall big picture remains bearish, you should pay more attention to sell signals over the buys.