KCPO - Hidden Bulls And Crouching Cows ? - 12/17/2012

The market drifted sideway for the first 2 days of last week , then collapsed again on Wednesday, but only only to see it recovering all lost ground on Friday. I did not engage any new shorts position as price went to test the last support for the third time but failed to penetrate. This is making the market XXX bullish as a rare triple bottoms is being formed. With this triple bottoms also come with a bullish divergence with the MACD. Instead I am now waiting for a new signal for a new buy. The new signal would be price closing above the bottom band with a positive crossing up from the Stochastic.



 The weekly chart is still filled with bearishness as MACD, DMI and Stochastic stay negative. And price stay below the bottom band. The ADX is still rising and has not shown any sign of weakening. Generally speaking - the bears are still in command. But just like the daily chart, I am waiting for a breakup above the bottom band with a positive Stochastic as an initial reversal signal. Unlike the daily chart, MACD does not has any divergence but I do see one at the Stochastic. So there is still ground to wait for a reversal soon.

Other from the charts technical readings,  I am finding a possible reversal in KCPO market for another reason. I have noticed that increasing number of  bearish statements made by various fundamental "experts" on this market. As they are always proven wrong on every market, I think you should start look for the hidden bulls in this market.