KCPO - Bears Are losing Steam - 9/17/2012

The bear seems to be losing their strength and they were unable to press the market down further. For the whole of last week prices stayed above the bottom band and moved sideway. The ADX started falling again and reflected on this total lack of trend. ADX is now at 17's. I now use the bottom band as support and if price is to break below it, I would sell again. And I am also using the middle band as a resistance, if price goes above there, I would buy if the Stochastic can compliment it by crossing up. 
 

 

 The weekly chart remains the same as last week with the Stochastic continuing to rise while the MACD stays negative. The ADX stays flat which is telling us that the market is not going anywhere. The bottom band seems to provide a good support with price closes above it. The bullish divergence remains intact. So be prepared for the return of the mighty bull.

As like the previous weeks, my conviction stays with the bull camp. This is not of a blind faith but one that comes with a double bottoms and bullish divergence formations. And the latest QE3 may just be the stimulus for the return of the bull.