FCPO:- Recent Support Is Crucial - 8/8/2011

The market hugged between the top and middle Bollinger Band for a few more days before suddenly collapsed below the lower band.  The Stochastic is falling toward its 50's signal line which is a more confirming sell signal. The MACD is turning its head around but it remains positive. The DMI is whipping outwards with the rising ADX, both are confirming the beginning of a new trend.

I would watch out for its previous low of 3016, I would add on shorts position if that level is broken.

 

The weekly chart remains almost same as the previous week. The MACD and DMI remain negative; The ADX is still flat and dead. The Stochastic is still struggling to cross up above its 20's signal line. So the game plan here is to wait for the Stochastic to cross up 20's and price to go above the lower Bollinger Band, otherwise everything remains bearish biased.

I would like to wait for another 1 week before forming an opinion on the KCPO market's next direction. Commodities market is usually affected greatly by the currencies market. So I am also seeking some clues from them to assess this market.