FCPO - Bulls Charge On- 6/10/2013

Price went down the top band last Tuesday and took out my long positions. I entered a new shorts on the next day as price went below Tuesday's sell signal which was confirmed by the negative Stochastic. But I closed them off at the day end when price went back above the signal day's high and top band. I bought again the next day when price went above Wednesday's high because price has already closed back above the top band.

All the indicators stay positive as at last Friday. The most encouraging item would be the ADX which has begun to rise to 20's. This is confirming a new trend may has already begun.

 

The weekly chart continues to favour the bulls as both the Stochastic and MACD stays positive and rising. Price has now closed above the middle band which by itself is another buy signal. The middle band is basically a 20 periods moving average which is widely watched level. The DMI, though remains negative but it is fast closing the gap between the D+ and D-.  Meanwhile the ADX continues to fall which is confirming the end of the prior sell cycle.

The  items to watch out for at the weekly chart for the coming weeks would be: (1) price closing above the top band  (2) D+ crosses up above the D- . (3) MACD crosses above its zero signal line and (4) Stochastic going above its 50's signal line. All should be read as major bullish confirmations.

For the past few days, media has begun to publish "bullish" statistics for CPO as stocks have been declining which "experts" use to "explain" as why FCPO has been going up. As usual they are late and only aware of what actually goes on in the market after a long lag. Just another example why chart reading is good for you.