KCPO:- Market Undecided For Now - 10/24/2011

This market is also following the FKLI entering into a range bounding mode. The Stochastic is turning down while the MACD remains positive. The ADX is falling while the DMI begins to get tightened. I also take note prices seem to get stuck inside the Bollinger Band which itself started to "tighten". All these are pointing at a sideway market.

I would stay aside for a while because of the lack of trend in this market. But if you have been following this column, you would know I will always get excited as the Bollinger Band starts to tighten and ADX goes extreme low. This could be the beginning of another of those kinds of situation. What follows should be earth shattering.

 

The weekly chart has turned back to full bearish as the Stochastic has just turned negative again. The MACD and DMI stay negative too. Prices have not able to close above the lower band. Again the old "bright" spot is the ADX has gone flat which is telling us the bear is losing steam. And it is above the DMI which may hinting that the bear market is oversold. But nothing yet to say the bear is gone.

Many markets seem to be caught in a ball of confusion as everybody is holding their breath to wait for something concrete coming out the EU politicians. Thus what we have now is rumors after rumors that move and shock the markets back and forth.