KCPO:- Will It Goes Further ? -6/6/2011

Last week I mentioned about the overbought Stochastic and that we may see some retracement. And prices came down and corrected for the first 3 days of last trading week and then turned up again on Thursday. The Stochastic continues to fall  but the MACD is still positive and pointing up. But pay attention to the ADX as it has turned flat again. I am concerned about that the bulls may have lost the script again and go sideway.

The weekly chart Stochastic is still rising while the MACD is also trying to cross up. The middle Bollinger Band serves as a resistance for the time now. So we would need to see price goes above 3478 in order to see further bullish action. Meanwhile the weekly ADX  is still falling, so do not expect any big moves yet.

Buy again if price breaks 3465.