KCPO - The Bulls Fight Back - 3/12/2012

I just cannot stop emphasizing the importance of placing stops on every trade. In the case of KCPO , it really spurn a nasty surprise on my short trades with its uncanny roar back from the bulls. I closed off the shorts on last Wednesday when price went above the prior day high plus 2 points. I did not engage any new long trade because both the Stochastic and MACD have failed to confirm the current up move. The coming Monday would be interesting as all indicators are going for a new buy. Even the ADX has begun to rise. So I would buy at 3370 and place a stop on 3315. If price continues to move in my favor, prior day low minus 2 would be placed in as my next stop.


 
The weekly chart stays bullish as per last week. All the indicators are positive. But the ADX remains flat and D+ still has not break 30's. I need that 2 conditions to confirm a strong bull has emerged. But the signs are encouraging.

It would be interesting to see whether a strong USD would contain KCPO bulls.