KCPO:- Will CPO Follows Crude Oil ?- 5/9/2011

Again the last trade turned out another very short term one when last Tuesday open immediately took out the stop. The rest of the week saw prices jump here and there without really without seeing any new direction until Friday's dramatic gap down. This market is reacting to international commodities market especially the crude oil and silver .

Both the Stochastic and MACD are not pointing down and price is below the lower Bollinger Band. An interesting item would be the ADX has finally started to rise. With this, it could mean that a new trend may be commencing. Place stop at 3246 if you have already sold the market.

 

In the weekly chart, you would immediately notice that the ADX has stopped falling. This could mean that a new direction may commence soon. Both the Stochastic and MACD are still falling and negative, with prices stay below the lower Bollinger Band. All these 3 items are pointing at a bear cycle. I would watch out for a closing of below 3163 as a confirmation of a new move.

If the international FX and commodities market continue their new spiraling direction, then our own KCPO may just follow its demise.