FCPO - Bulls Flex Some Muscle But Is This The Real Thing Yet ? - 10/14/2013

 
The previous week's the Hammer Japanese Candlestick proved to be a good signal for a possible reversal. On last Monday price went above its high and began a week of up moves. Price has now closed above the top band which is a very bullish confirmation. The Stochastic,DMI and MACD are positive. The MACD is now crossing above its zero signal line again, this line is used to identify the bull and bear boundary. Though the past week has been good to the bulls, I would call for some caution as the ADX has been flat at 17's and the Stochastic has now entered the overbought zone. Last Friday Candlestick was a black body candlestick (open is lower than close), I would expect some retracement or sideway movement before the next wave comes. So you can  choose to take profit at prior day low.
 

The weekly chart remains unclear as the Stochastic stays negative while the MACD remans positive and continues its climb toward its zero signal line. The DMI stays negative with the ADX starting to fall again.  The contradicting indicators, falling and lowly ADX and prices got stuck within the bands - all these are telling us this is still a listless market. I would need to see price closes above the top band as a minimum requirement to call for a bullish market. Of course the best confirmation will come if price can close above its recent fractal high of 2485.
Though I remain increasing bullish about this market, but what has happened in the market for the past week still has not confirm the real thing. So I maintain my trading mode by acting on each new buy/sell signal as a new trend has not formed yet. The US Dollar also has not established a new trend yet.