KCPO:- Are We Witnessing The Beginning Of 

A Strong Rebound ?- 8/15/2011

 

The market spiked to a new low last Tuesday then stopped. It managed to climb back above the lower Bollinger Band last Friday. As this is complimented by a positive Stochastic, I have entered some initial long positions. The MACD has started to turn around but it remains negative. The ADX has flattened which is telling us the prior bear trend is stalling.

As the MACD has not yet turned positive, so I cannot say that the bear has gone away. But as it has begun to turnaround, if when I can see a positive cross in the coming week, then we would have a bullish divergence formed. With that, it would mean we can expect the return of a strong bull in this market. Of course, I will NOT wish for it but I would NEED to it actually getting formed before placing more of my money down.

 

The weekly chart Stochastic continues to fight hard to climb over its 20's signal line but so far it still remains below.  It would be an initial buy signal if it can go above its 20's level with a price closing of above the lower Bollinger Band. Meanwhile the MACD continues to fall and the ADX has started rising. So I cannot say that I am getting too bullish about this market even though the daily chart may has been improving.

Many of the commodities seem to begin to decouple from the USD. This is really becoming amusing as there should be new theories forward by the experts soon.