FCPO - Bulls Fight On - 10/28/2013

The market gave another push to the upside for the first 3 days of last week but went into a consolidation for the remaining 2 trading days. If you have applied the prior day low as stop then you would have stopped out by last Friday. But if it is the top band approach, then you are still in the game. It is clear that the market is losing momentum and may begin to retrace some bit. Watch out for a possible new sell signal next when price close below the top band with the Stochastic crossing down its 80's signal line. But I would keep my stop tight once the trade is executed.

The DMI remains positive and the ADX is still rising, this is telling us the trend is still intact.

 
The weekly chart has once again turned in favor of the bull. The Stochastic has turned positive again which is now in agreement with the MACD. The MACD is still rising and moving toward the zero signal line closer than ever. Price has now closed above the top band which is confirming last week's buy signal because it is higher than last week's high. But, it has not able to close above its recent fractal high of 2485 though it did went to test that level. The next few weeks would be crucial for the bull to make or break. I need a solid close above 2485 in order to call the return of the super bull. For the moment, since the ADX is still falling and it is below the 20's, so the bull still does not have a strong grade.

It is getting very exciting to watch whether the market is able to go further up. If so, then my call of a super bull cycle shall play out nicely . Otherwise if market retraces from here, I would think we will see another period of sideway moves. Lets be brutally honest here, our government certainly need more revenue to fill up the bottomless pit of deficits.