KCPO - Market May retrace Or Go Sideway - 2/11/2013
After the previous week's strong upmove, the market decided to
take a rest and went sideway. This is most probably due to the
long Chinese New Year holiday ahead and traders do not wish to
take their risks home. I am using the top band as my stop at 2530.
Both the MACD and DMI are positive while the ADX continues to
rise. This is confirming the trend is still intact. But the
Stochastic has turned negative, but it remains above the 80's
zone. So we should expect some retracement or sideway moves before
the market resumes its prior trend.
The weekly chart's Stochastic and MACD are still climbing while
the DMI continues to close up its gap. Price manages to close
above the top band which by itself is a new buy signal. But the
Bollinger Band is tightening, this is telling us the market is
going sideway. If I am trading this chart, I would only buy if
price goes above this week's high as a filter.
We may see more sideway move in the coming week as most traders
would not be back to work yet.
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