FCPO - Super Bulls Around The Corner ? - 8/26/2013

The bulls continue to fight their way upward. I was stopped out on 20/8 as I have placed my stop at the prior day's low. But I re-engaged new long positions on 22/8 when price went higher than the prior day high again. As the ADX continues to fall and it has now gone below the 20's level, I would expect some kind of sideway movement in the coming week. So I will again use the prior day low as my stop in order to protect the profit.

The MACD , DMI and the Stochastic are now all positive. The MACD has just crossed above its zero signal line which I use to differentiate the bulls/bears zone. Since the ADX is still falling and it is now below the 20's, so I would pay more attention to the Stochastic in my trading. The Stochastic is now inside the overbought zone, so I expect some retracement or sideway moves before the next burst to the upside. The recent 2284 fractal high has now changed to the support level.

 
The weekly chart continues to favour the bulls as price now has closed above the middle band which is the de facto 20 periods moving average. The Stochastic continues to tick upward and the MACD has turned positive and moving toward its zero signal line. If price can go and close above the  top band, then that will provide another new buy signal. The usual slow acting DMI remains negative and seem to closing their gap. When if price continues to go higher, then we may be able to see the DMI turns positive soon. The ADX has begun to fall, it is telling me that the prior trend  has ended.

With the latest MACD crossing up its moving average, I am getting a new confirmed bullish divergence formation. I am waiting for price to go close above the top band or it would even be better if it can close above its recent fractal high of 2491, when done, I think this long delayed monstrous bull should start kick in and flip heaven.

I think the PM should be very happy if increased revenue can come from this sector. Not only will the nation's piggy bank get some fresh revenue,  those  large traditionally pro-government FELDA farmers can get happy too.