KCPO:- Near Suppot Line - It Is Make Or Break Time -6/20/2011

 

The market continues its fall as the ADX starts to kick in. It has been rising since the previous week and it has now risen to 20's where it crossed above the falling D+. This crossing is usually taken by those trade by the using DMI as a great sell signal. Place stop at 3263. If prices continues to fall, the prior small bullish divergence may be erased.

With the ADX coming into control, I would start paying more attention on the MACD over the Stochastic. Though the Stochastic is in its oversold zone, but with the MACD continues to fall and it is below its zero signal line , I think the selling should continue.

 

The weekly chart is still of contradictions. The Stochastic is still rising and positive while the MACD stays negative and falling. On the bearish side, price has again closed below the bottom Bollinger Band which could be taken as a sell signal. The ADX has finally stop falling and turns flat, this may be taken as a early warning sign of a new trend in making. If price is to close below its recent low of 3148, then we may see a new wave of strong selling coming on.

There has been a lot of 'experts' turning into Dr. Doom with their views that the world will face food shortage and food prices will shoot up. But that is not exactly what the commodities charts seem to telling us as in the case of CPO right now. But we cannot say the same of Malaysia's food prices as most of them remain  market distorted as they continue to manipulated by the government and its friends. I, for one, am anxious to see the government lives up to its promises by reducing petrol prices when international crude oil prices continue to slide. Same applies to flour and sugar.