KCPO - Drifting Lower - 12/10/2012

The market broke below the bottom band on last Monday with confirmations from both the Stochastic and MACD going negative again. Base on these signals, I sold again. But it turns out to be unprofitable as price went back up to test the bottom band again on Friday which took out my stops.

The ADX has gone flat and the Stochastic is falling below the oversold zone. I would not be surprise if it goes down and test the support again but I would suggest to wait out for a new bbuy signal.

 
The weekly chart remains same as last week's. The Stochastic , MACD and DMI stay negative and price stays below the bottom band. Watchout for an early reversal in price corssing above the bottom band and Stochastic crossing up above its 20's signal line.

This is a lesson to be learnt here as many fundamental experts always comparing CPO with its cousins, the soy complex. Their argument is that since both of similar nature, that they should behave similarly on their pricing. But the soy complex has been rallying nicely the past 1 month, but KCPO just drift lower. Of course there are always "explanation" that come after prices have changed direction .Once again showing us that market fundamentals and logics cannot help us to make money from the market.