KCPO:- Selling Continues - 6/13/2011

The Stochastic continues to fall as the MACD has also turned negative. Price has now gone below the lower Bollinger Band which is really bearish. The ADX has also begun to rise and may be crossing above its 20's signal line soon. This is telling us that a new trend has may has begun. Place stop at 3304.
3213 and 3175 may provide as supports.

 

The weekly chart ADX is still falling while the positive Stochastic is contradicting the negative MACD, all these are telling us the market is listless. But the D- seems to be regaining strength. Since last week price still managed to close at the lower Bollinger Band, so the coming week would be crucial. If prices go below the lower band, it would mean another new sell cycle has begun.

As long as the bullish divergence setup remains intact, we may still see a possible price upward reversal later.