FCPO - New Sell Signal Despite Strong Fundamentals - 7/15/2013

The market was only able to make some smallish movement upward and then quickly lost steam and collapsed again on last Friday. Stop on the bottom band was immediately taken out on Friday.

A new sell signal is now flashed with price closed below the bottom band that came with the Stochastic crossing down again. I would sell on coming Monday at 2293 and place a stop at 2347. The current signal is also backed by the negative MACD and DMI. Most important of all is that the ADX has begun to rise above 20's level. The bears may be able to gather more friends this time.


 

The weekly chart has some new developments to watch out. The Stochastic has turned negative with price closed below the bottom band. This is a new sell signal. The MACD remains positive but it is turning its head around, so we may see it turning negative soon. The DMI stays negative with the ADX remains flat. So I am not getting a confirmation on a new trend yet. But with the new sell signal, the bears seem to gain a upper hand over the bulls.

Though I remain bullish for this market, but as there is a new sell signal so I must follow this new trading signal. And once again this new sell signal is giving us another valuable lesson in trading/investing that the market does not reflect the fundamentals. The fundamentals now is that the stock level is coming down fast and with that, FCPO price SHOULD go up. But it is obviously not.