KCPO:-The Bulls Are In Control - 5/30/2011

 

The bull remains in control for the past week as price stays above the upper Bolllinger Band. The MACD has now crossed up above the zero signal line which is giving more affirmative action to the bulls. Most important of all is the ADX which has commenced to rise and the Bollinger Band has also begun to expand. Both these are telling us a new trend has commenced.

The Stochastic has gone into the overbought zone (remember the ADX is still at 18's) , so we may expect some minor retracement before the real action comes. We may see 3560 and 3650 again.

 

The weekly chart is getting more positive as the Stochastic is trying to cross above its 20's signal line. This is offering an additional buy signal. The MACD remains negative but seems to begin to turning around. But the most promising item is the candlestick managed to closed above prior week's high. Since the weekly ADX is still falling, we should consider the current move as a counter-trend move. But with the presence of the bullish divergence at the daily chart, this trade should be  very profitable.