KCPO:- A Foggy Market - 5/16/2011

The market failed to follow through and moved back into the Bollinger Band with the ADX went flat at 18's. Both the Stochastic and MACD has turned positive again. If you bought when price closed above the lower Bollinger Band with a positive Stochastic on last Tuesday and got stopped out on Thursday, you may re-entered long on Friday (such is the "inconvenience" of trading when the ADX is dead) , place stop at 3227.

I notice there is an interesting  bullish divergence formed in the daily chart as the MACD keeps doing a higher trough when price went a new low on 6/5. The lowly ADX and tightening Bollinger Band, I would keep an eagle eye on this market as an explosive move may be on its way.

The weekly chart stays bearish as both the Stochastic and MACD are still negative and falling. The ADX has stayed flat and prices stay above 3163. A break below those levels may see a new bear cycle. Otherwise we will just continue to see more sideway movement.

Both the daily and weekly chart ADX are dead , so either you stay out or just trade very short term, preferably intraday and wait for a confirmation of a new trend.