KCPO - The Bulls Stand Ground And Make Another Fight - 4/29/2013

The market broke low on last Monday and I was suppose to sell on the next day at the signal day low minus 2 points. But it did not follow through, instead price reversed and closed higher. Price finally closed above the bottom band on last Thursday with a confirmation from the Stochastic. On last Friday, the MACD followed suit and turned positive and the Stochastic crossed above its 20's signal line. The DMI remains negative

and the ADX has gone flat. The flat ADX is telling us the prior sell cycle may has ended (at least temporarily). The middle band now become the next resistance, I would add on to my longs position once that is broken up. I am placing stops at the bottom band minus 2/3 points.

Since the ADX is low and flat, again it is the Stochastic that should be used for the current trading.

The weekly chart remains bearish as the Stochastic, MACD and DMI remain negative. But prices did not continue to fall so the 2220 level support is still intact. If price manages to close back up above the bottom band, then the bears may be losing the grip again.

I think there is a high probability that this market may be testing the upside again. If price can continue to advance in the coming week, then I would need to reassess the whole situation due to its prior bullish formations.