KCPO -  Bulls Gathering Strength - 8/27/2012

 

Now that price has closed solidly above its recent fractal high of 3007 and the top band, so we can expect the bulls after a rest, should go further from here. Both the Stochastic and MACD continue to climb upward with the Stochastic crosses its 50's signal line and MACD crossing its zero signal line. Both these are usually more reassuring for the bulls. The DMI also expanded with the ADX rising above its 20's signal line. And this is also adding strength to the bulls.

The weekly chart is showing more positive signs as price stayed above the lower band and may go test the middle band by the coming week. The D+ has crossed its 20's signal line, though it is still below the D-, this can be taken as another initial buy signal. The MACD is still negative but it is trying to turn around and we may see a positive crossover by the coming week. So if you are trading by the weekly chart, buy when if price can break above last week high of 3069.

Looking at the long term chart, is the current up move cycle another major bull market ? I do not think so.  It may just be another one of those technical rebounds. But with divergence writing all over the short term and intermediate term charts, what the heck, it is going be another one of those roaring profitable trade. Just take it and leave it to the fundamentalists to debate and "explain" the market.