KCPO:- More Sideway - 5/2/2011

Remember the "lousy" ADX I mentioned last week ?The long trade turned out just another short term one. My long position was taken out on Tuesday when it took out 3 points below the previous day low. Then I turned short again when price went below the middle band with the Stochastic turning negative again. I would keep stop on last Friday's high plus 3 points. As the ADX has now flat below 20's, the latest trade may again turned out to be another very short term trade.

The Stochastic has turned negative but he MACD stays positive -  contradicting indicators together with the lowly ADX confirm the lack of trend in this market.  I have drawn 2 horizontal lines to mark out its recent range. Any breaking away from these level may lead to a new directional move.

The weekly chart remains almost the same as last week. Both the indicators remain negative . The ADX continues to fall. I take note that prices have been the 3210 level for the past few weeks, so if we see a convincing close below that level would mean the beginning of a new bear, otherwise there may still a chance for the bull regain some control.

The global commodities market continues their volatility, thus making the market a very dangerous but extremely profitable place to be. Stay alert.