KCPO - Keep Very Tight   Stop -2/20/2012

 

This market also took out my long position last Thursday when it went below prior day low. It is ok since the trade has been profitable. I went back in to buy on Friday when price broke above 3213 with a positive Stochastic complimenting it. Since the ADX is at a lowly 14's , thus I would consider the Stochastic gone overbought, so I would keep my stop tighter at 3202. Again I would advocate keep your stop as tight as possible and get ever ready to take profit off the table. 



 
The weekly chart indicators remain contradicting to each other as Stochastic is negative and MACD is positive. The DMI has turned positive but ADX continues to fall. It is now at 14's. Though price has closed above the upper band which is usually an encouraging sign for the bull and it acts as an initial buy signal, but I remain cautious. 3270 is an important resistance and I would only turn more bullish biased when if price can close above that level. Ever since DMI started wiggling and the ADX started falling from mid November last year to now, market has not gone any major direction. And it will continue to behave so until major resistance or support has been broken.

If you have to trade in this market, I repeat:- you must keep the stop tighter than ever and get ever ready to take profit at soonest.