FCPO - If The Support Can Hold Then Happy Days Are Back - 5/6/2013

 

The middle band proved itself as a strong resistance as price went to test it and then reversed. I closed off my previously long position when price went below prior day low minus 2 points on last Monday. I did not engage in any new shorts position when price went below the bottom band on last Monday and Thursday as the Stochastic stayed positive. The real signal only came last Friday when price closed below the bottom band and the Stochastic turned negative. I would sell on the coming Monday when if price goes below 2243. I need to pay attention to the 2220 support as it has been tested several time but remain intact.

We may be in a time of great interesting as a new bullish divergence may be in formation. And if price is able to bounce off the 2220 support level again, then  the bulls may still be making a comeback.

 

The weekly chart stays bearish as the Stochastic, MACD and DMI stay negative. Price is below the bottom band. But the Stochastic has now entered in its oversold zone. I have drawn out 2 horizontal lines to mark out the market's recent 400 points range. As the market may be going to test the 2220 level again, please take note the MACD has not gone to a lower trough. This is certainly something interesting to follow.
If the market is to collapse from here, it would spell trouble for the government as there are many people with the FELDA scheme will be adversely affected. So will be many other smallholders. Though as a trader I can either take a long or short position , it will still be profitable to me. But in the current situation,  I would rather get my profit from the long side.