KCPO - Bulls Struggling To Fight Back- 12/3/2012

The market is caught in a listless mode as it drifted within the band. The Stochastic and MACD stay positive while the DMI stays negative. The flat ADX confirms the current listlessness. I am watching the MACD intensely as whether it can cross above its zero signal line. With that , I would be more comfortable with the double bottoms formation/bull cycle talks. At this moment, I would watch both the bottom and top band breakouts as the next trading signal. Unless the double bottoms formation has been erased, I continue to harbor thoughts of a possible major reversal.

 The weekly chart remains in the control of the bears as all the 3 indicators stay negative. The ADX is still rising and that is telling us the bearish trend is not over yet. I am watching for a closing above the bottom band as a possible reversal.




The monthly chart shows that the bears are still in control as price remains below the bottom band with all the 3 indicators remain negative. As the MACD has now crossed down below its zero signal line , there is a possibility that this market is entering a new major bear cycle.

With FGV published its result, you should ask where are all the market talking heads' previous enthusiasm now ? If you are a chart reader, you would have known that KCPO market has not been a pretty one since mid last year. And if you are also holding equties, then you would have start cutting down or sell out the plantation stocks regardless how "blue chip" they are.