KCPO - Prior Short Lived Trend Ending ?- 1/2/2012

Last week the market began to lose some momentum but it still manage to hold above the top Bollinger Band. Though both the MACD and Stochastic continue to stay bullish but the Stochastic has gone into the overbought zone. I am particularly paying attention to this one because the ADX has gone flat at 20's which is saying the prior trend has again fizzled out. So I would start tighten my stop. Previous day low minus 2 should be prudent.



 


The weekly chart is getting a little warmer towards the he Stochastic and DMI have finally turned positive which is supplementing the already positive MACD.  Price has managed to stay above the top band which is also a plus point for the bull. But as the ADX is still falling so we cannot find a confirmation of a trend here in this market yet. If base of the weekly chart alone, I would really need a closing of above 3270 in order to say a major bull is its way.

Meanwhile we can get that confirmation, I would just trade with the flow.