KCPO - Still No Big Move But May Test Upside Again - 4/22/2013

 

 The latest shorts position entered on 12/4 when price went below the bottom band with a negative Stochastic was taken out on last Thursday when price went above the prior day high. There is no new buy signal yet as on last Friday. The plan will be buy if price goes above the bottom band with a confirming positive Stochastic OR sell again if price goes below 2265. The sell side will need a very tight stop as the Stochastic has already gone into the oversold zone.
The Stochastic is inside the oversold zone and has already crossed up. I would prefer to see a crossup above its 20's signal line for a more comforting support to the buy signal. The MACD and DMI remain negative while the ADX has finally begun to rise. It is at 16's now and maybe too early to confirm a new trend. A major support is at 2220 and the nearest resistance will be 2335 which was a support back then.


The weekly chart is turning to more bearish biased as the Stochastic and DMI remain negative; the  MACD has just turned negative with price went below the bottom band. So everything is pointing to a sell market.  The support of 2220 is vital as that level has been tested 3 times in the recent times. If that level gives way, then we might see a huge selloff.