KCPO:- A Simmering Bull ? - 11/7/2011

The former support of 2945 failed to hold last week as prices went through it but swiftly recovered. The ADX has been falling and it is now at 19's. The Stochastic had been contradicting with the MACD.  Both signs pointing at a sideway market. But last Friday the Stochastic has  crossed up again which makes it in consensus with the MACD.   And last Friday's price also successfully broke up and closed above its recent high of 3007. With the ADX now has turned flat and DMI widening , I think the bull may still have a chance to go higher.

 

There are more good news coming out of the weekly chart as MACD has finally crossed up. The Stochastic continues to be positive and upward. Prices solidly closed above the middle band which is a 20 periods moving average. Even the DMI remains negative, it continues to improve further with the D- falling. But I think price would need to go above 3087 before I can call for a return of the bulls. Please take note the Bollinger Band has been tightening, this could be foretelling us the market may not be ready for a solid bull run yet.

As I last mentioned here , there is a very nice bullish divergence formed at the weekly Stochastic. As there was also a bullish divergence found at the daily chart's MACD, so I think this market may soon rip and roar up.Be prepared.