KCPO - The Bulls May Have Arrived-12/24/2012

 A new buy signal came last Monday when price gapped above the bottom band with the Stochastic crossing above its 20's signal line. Prices drifted down for the next 3 days before performed another shock and awe 88 points up penetrating and closed above the top band. By which that is offering another buy signal. I would add on my long position on the coming Monday if price goes above 2410. The Stochastic, MACD and DMI are now in unison of turning positive. The ADX continues to fall which further confirm the end of the prior bearish trend.

As discussed here last week, the daily chart is XXX bullish with the rare triple bottoms and bullish divergence. This may be the beginning of a new strong bull cycle. It will be even more reassuring when the MACD crosses up above its zero signal line.


The weekly chart finally making a turn away from bearishness. Both the Stochastic and MACD are trying to make a turnaround. The most promising item is the ADX has now gone above the DMI which is confirming that this market is oversold. Price has managed to close above the bottom band with the Stochastic turning positive. If I am trading the weekly chart, I would only buy in the coming week when if price is above to go above 2410. Of course a more comforting confirmation would be having the Stochastic crossing up above its 20's signal line. At least for now we may be witnessing the beginning of a new bull cycle.

Last week there were more bearish opinions in the media from fundamental experts  on KCPO. They always base their arguments on stock levels, export figures etc. When I first begun trading KCPO market some 14 years ago, I quickly learnt some bitter lessons (means losing tons of money) that I cannot trade futures market with fundamental statistics and assumptions. Charts always tell us what the big boys are doing before they become news. Of course sometimes some out of blue thing happens (like 9-11) which will put off what the charts have been hinting, but their course will soon re-emerges.


I would want to wish everybody  a very prosperous and happy Christmas and New Year with good health. I hope 2012 has been good to you and may the coming new year be an even better one.