KCPO:- At Crucial Support Level / Another Make Or Break Moment - 12/5/2011

 

The market continues to deteriorate but seems to find some support at the lower Bollinger Band which is also a 50% retracement point from its last up move.This 50% rule is making this support significant.  But as the Stochastic and MACD continue to fall and DMI stays negative, if the band support fails to hold, the next drop would be dramatic.

 

The weekly chart's Stochastic and MACD remain positive while the DMI is negative. ADX is still falling while prices stay below the upper band. But I would pay attention to the middle band support. When if price is to close below that level, maybe a stronger bear move would start from there. For now all I can say about the chart is it is in a no man land. Lets wait for another week or two in order to have a clearer reading of its next possible direction.

Many of the funds managers seem to be waiting for a clearer lead from a near term outcome of the Euroland financial crisis to decide their next course of action. Hence most of the commodities market has not shown any clear direction yet.