FCPO - Market A Bit Overbought But Bulls Stay Strong - 6/3/2013

The market got a bit overbought and then started to retrace but it did not hit my stop which is placed at the top band minus 2/3 points. I continue to place my current stop at that level.

The MACD continues to rise above its zero signal line which is confirming that this market has now officially gone back into the bull cycle. The Stochastic has turned negative and may cross down below its 80's signal line. I am reading this as an overbought situation because the ADX is flat below its 20's signal line. With such low ADX, it is still the Stochastic that remains in command.

 
The weekly chart continues to favour the bulls. The Stochastic and MACD stay positive and continue to rise. Price has been rising and now challenging the middle band. If price is able to close above it by the coming week, it would mean another solid new buy signal. The as usual slow reacting DMI remains negative but it has been trying to close up the gap between the D+ and D-. The ADX has again begun to fall, this is telling us a minor counter trend is in action. In this case, it is the current up move cycle.

The daily chart up move may be getting a bit over extended, I expect to see some congestion or retracement, but what comes after that should be interesting.