KCPO - Stay Out Or Possibly Face More "Misadventures" Ahead - 2/13/2012

When the market reopened last week, it immediately took out my stop and with it, a big chunk of the profit. This kind of "misadventure" always happen to traders whenever the ADX is low. The market flashed a new buy signal when price closed above the bottom band with a positive Stochastic, so far the last 2 days prices have failed to continue its uptrend. It looks like another "unfortunate misadventure" in making. I am placing stop at 3009. If prices can go up again in the coming week, then I would shift the stop to prior day low minus 3.

The Stochastic and DMI are positive, the MACD remains negative. The lousiest item here is the ADX which continue to fall. It is at 12's. So in this kind of scenario, the other smart thing to do is to stay aside and watch and do not do anything.



The weekly chart Stochastic continues to fall while the MACD stays positive (contradicting indicators !) The ADX is still falling , it is now at 15's. The DMI is still wiggling. Price stays between the middle and upper band. All are pointing at a listless market. The middle band is an important support, if prices go below 3060, then it will warrant a more detailed study for a possible new direction.

Conclusion - stay out of this market for the time being.