KCPO - Loose Bulls On A Rampage - 4/9/2012

 

Last Monday's opening immediately took out my shorts and the market after pausing at high level for the next few days and then took off to a new high on Friday. I went back in and bought on Tuesday when it broke new high. This is as why we must always keep an eye on the longer parameter charts. Last week I mentioned the monthly chart MACD has already flashed an initial buy signal when it crossed up and become positive. That brings it in line to the already positive Stochastic. And I also mentioned that 3500 was an important place to watch as it is the top Bollinger Band. I also begin to rave as I take note that the monthly ADX has begun to rise. This is a sign that a new trend may has commenced.


 
This week another strong support for the bull came at the weekly chart when the rising ADX rises and crossed the falling D-. This is usually taken as an important trend buy signal. Since the ADX is rising, you should monitor the MACD instead of the Stochastic.
Furthermore price has cleared off its prior fractal resistances (2 horizontal lines marked out at the chart) . It is the beginning of a new bull cycle. I am looking at 4,100+ and 4,900+ as its targets.

I suggest you should buy some at the intraday weakness areas and enjoy the ride.