FCPO - The Bulls Refuse To Give Up - 8/5/2013

I took profit on 29/7 when price went above the prior day high. I adapt this method rather than placing stop at bottom band because the Stochastic was low and sellers tend to take their profit most of the times. A new buy signal quickly followed on 30/7 when price blasted up and closed above the bottom band with the Stochastic also turning positive. I bought on the next day when price went above the signal day high.  The MACD has also turned positive  on the following day. The slow acting DMI, as usual, remains negative but its gap is fast reducing. The ADX has begun to drop which is indicating the prior trend has ended.

Place  stop at the bottom band.

 
At the weekly chart, nothing can be said about the return of the bulls except you should take note price has gone back and close above the previously strong support (now turned resistance)  of 2230. And D- of DMI has now turned down which is telling us the sellers are having a remorse on their earlier selling decision. These two are  most probably the only piece of "bullish" item. The Stochastic, DMI and MACD continue to stay negative. The Stochastic seems to trying to turn around, but I cannot make trading decision on that alone. Price closing above the  bottom band of 2269 will be important if the bulls want to make a comeback. Otherwise I would sell more if price is to go below 2137 in the coming week.

In the more intermediate term I am still a bull's ally as all the formerly formed bullish formations remain intact. And if by the coming weeks when either the MACD or Stochastic make another positive cross up, I would bet my money on a powerful bull cycle again.