FCPO - Bull May Take A Rest But More To Come - 11/25/2013

Price did not go higher than the previous Friday's high but instead it went on retracing for the next 2 days. On last Wednesday, the Stochastic finally turned negative with price stayed below the top band. I would sell on the next day if price went below the signal day low. But it did not but instead it gapped at open and went higher than the prior day high. If you are one of those more daring type, then you would buy in once price went above the prior day high (because the big picture is still in favor of the bull) or you would want to wait for the indicators to confirm. That did not come as  the Stochastic  remains negative on last Friday's closing, though the MACD went positive again. But the Friday's Japanese Candlestick was not encouraging as it opened high and closed low (a black body) . If you had bought, I would suggest you to close on the coming Monday if price goes below Friday's low.

The DMI stays positive and the D+ stretching outward again which is reflecting the current strong buying. The ADX has now resumed its rises which is also confirming the resumption of the prior trend. But it is still an overbought sign as it is above the DMI. 2 warnings here:- though price continues to go higher, all the indicators have NOT followed so. It is a sure sign that the buyers may be exhausted, at least for the present time. MACD is contradicting with the Stochastic, so it may be beginning of a sideway market.

 

The weekly chart continues to favor the bull as the MACD is still rising and it is now above the zero signal line. The Stochastic is also rising and it is now inside the overbought zone. But as the ADX continues to rise to 22's, I may start to look at the MACD over the Stochastic. The DMI stays positive with the D+ spreading outward which is an indication that the buying has been strong. The most encouraging item here would be price has now closed above 2632 which it has not been able to penetrate for the past 2 weeks. It means price should be pulling itself away from the recent congestion and begin to go higher.

The daily chart's bull may be getting exhausted and may take another breather but the weekly chart is still pointing for more upward push. As we are getting toward the end of the month, if price can stay around here without too much retracement, we may soon getting more confirmation at the monthly chart. And that will be an extremely wonderful item for the super bull.