FCPO -  Would CPO Follow Other Commodities And Fall Like A Rock ? - 9/26/2011

The indicators have turned from last week's positive to the current's negative. With the previous week's MACD, DMI and Stochastic are  went positive in unison, but market hardly move up. Currently all the indicators have gone negative in unison, would it go further down ? The ADX is really like shit at 13's, I would not place too much faith in the bear yet unless prices solidly break down below the support (the bottom horizontal line), I would still of opinion that this market is still caught in a listless situation.

 

 

The weekly chart's Stochastic continue to rise and MACD is turning around but remain negative. But price is giving a contradicting signal as it has again closed below the lower Bollinger Band and the ADX has also resume its rises. All these are giving us contradicting signals.

Fundamentally, most of the commodities market are collapsing last week. Their demises challenge many of the " experts" market hypes - like gold as the ultimate safe haven in a troubled financial market (gold fell USD 100+ on Friday and 300 from its recent high - the result of a double tops formation) Silver followed on a similar pattern. All the so called "safe haven" currencies also fell like rock and the much talked down US Dollar is the only currency that shines. So, would the "fundamentals" bring down the CPO market ? If purely  chart wise , I would call the market listless at the present but since the bullish divergence remains intact, so I would remain very bullish about the market. That is until the divergence is erased.