KCPO - Will Bulls Win This Time ?-3/24/2013

 

I went back in and made my first buy on the market on last Wednesday when price closed above the middle band and got a confirmation from the Stochastic and MACD when they turned positive and crossed up above its 30's signal line. I bought more on the next day when pirce broke above its recent fractal high of 2467. And I bought again for the third time on last Friday when price went above Thursday's price went above the top band signal day's high. Here I am using 3 types of confirmations to enter my new trades. I have turned a bit more bullish biased even though the ADX falls below its 20's level. (weak or no trend) , this is because I have found a new bullish divergence at the Stochastic. It has formed a higher trough while prices had gone into a lower low (14/3 and 1/3)
As the ADX remains low, I will use the Stochastic to manage the current trade. My initial stop is at the top band minus 3 points.
 
The weekly chart is still full of contradictions as the Stochastic is negative and falling while the MACD stays positive and continue to rise. Despite the so called golden cross from MACD since late December last year, prices hardly move. Just a lesson here showing not all golden/death crosses are equal. The "bright" spot here is again the ADX which has begun to fall again from above the DMI. It is again reassuring me that the prior bear trend has ended. The other "bright" spot here is the tight Bollinger Band which usually bring explosive move down the road soon. But the "brightest" spot may be coming from the Japanese Candlestick which is a Engulfing Bullish Candle. This means the current white candle's body completely contain the past week's black candle's real body. But with this, I would still need the coming week's candle to close above this week's closing or preferably its high (which is also the top band)
Regardless what the fundamental analysts are saying at this moment (the EU continuing crisis and their pending cancellation of tax preferential)  , I am getting increasing bullish biased about this market as the long term charts seem to hinting for a cycle bottom .