KCPO - The Bulls Are Still Trying - 7/2/2012

I went back in to buy when price broke above the middle band with a confirmation from the Stochastic. After that, the market does not look too encouraging as it failed to go further up above the upper band. The Stochastic and MACD remain positive and are still rising, but with the ADX falling and the Bollinger Band seems to be tightening, I afraid this market may be turning into another sdieway mode.

I am placing my stop a little further at the middle band minus 2 points so that my positions would not get whipped out. With the falling ADX, I would pay attention to the Stochastic .

 
The weekly chart has failed to go above the previous week's high or the lower band. I will keep a lookout for the coming week on whether price can go above 3061 (last week's high) or 3047 (lower band) - both require the Stochastic to compliment a new buy signal. Both these are merely initial buy signal as both the MACD and DMI remain negative. The ADX remains flat at 20's for the 3rd week now.

This market's weekly chart is a little more encouraging for the buy side than the daily chart. The abrupt renewed EU's "bullishness" may just be the new energy to push the KCPO upward .