KCPO - Profit Taking Ahead ?-4/2/2012

The market made another push but soon fizzled out. I closed off my long position on last Thursday when price went below prior day's low minus 2. I tried a small number of shorts when price went below the top band with the Stochastic turned negative. I am placing my stop at 3444.

As at the last trading day for the month, price failed to go above 3500 which is the monthly chart top band. So we do not have a confirmation for the longer term bull. At least, not yet. So we need to wait for a solid closing of above 3500 in the current month in order to get a confirmation. But as at now, we do have a positive crossover at the Stochastic and that is already initial buy signal.

The weekly chart remains bullish as the MACD is still rising and it is supported by a rising ADX. If the ADX is able to cross up the falling D-, that would signal another buy. But since the ADX is still below 20's, so the Stochastic is still important. It is in the overbought zone and is turning downwards. Together with the Japanese Candlestick of  a shooting star , there is a high possibility that the market may stage   a possible short term reversal.

For the longer term parameter charts, this market is more biased towards the bulls. But expect some sellings along the way.