KCPO - A Technical Rebound Soon ? - 6/11/2012

I went short on last Monday but prices kept going up for the next 3 days reaching a high of 3039. Though it did not hit my stop, but it was not particularly a pleasant ride. Though I had adjusted my stop to 3042 by Thursday evening, but looking at the flat ADX and hooking up Stochastic, I have now decided to close off my position on coming Monday which would limit my losses.



I notice there is a mild bullish divergence of higher troughs formed at the indicators and a double bottom prices, and with the already hooking up Stochastic, I may want to switch back to buy mode when price is able to close above 3039 with a confirming Stochastic in the coming week.

Since the DMI remains negative and the MACD is far from its zero signal line, for the time being I remain of opinion that this may just be a technical rebound. Nevertheless, it is about obeying the trading rules and enter trade accordingly.


The weekly chart sell mode remains firmly as all 3 indicators are negative and prices stay below the lower band. But as mentioned last week, the ADX is still flat, thus we have not seen any major movement yet.

As the US Dollars is current taking a breather after its recent rises, so we begin to see come commodities recovering some of their recent losses. KCPO could be in that behavior now. But to say the worst is over may still be immature. We need to go back above 3000 soon or this market will see more selling again.