KCPO - The Bulls Rage On !- 11/21/2011

The bulls continue to rage on. The ADX is beautifully rising , supporting the rising MACD. The Stochastic is toppish but I would not be bother by it unless it crosses down its 80's line. With ADX now at 32's, Stochastic can remain "overbought" and crosses down a few times (at above 80's) and prices would continue to go higher and higher, so never try to short the market.

 

The weekly chart is even more bullish than ever. Prices have completely closed above the upper band. Both the Stochastic and MACD continue to go further upward. The most wonderful aspect is the DMI which has turned positive for the first time since mid March this year. If price can go above 3270, it would be another buy signal. The ADX continues to fall, confirming the end of prior trend. Price is now acting out fully on the bullish divergence presence at the Stochastic.

In the bad old days of Malaysian capital controls , a veteran broker once told me that Malaysians will buy up KCPO as an derivative instrument as to buy US Dollars when the greenbacks go up. I cannot really say whether what he told me is "scientific" as I never read any study published on it. Does it looks like he was right now ?