FCPO - Short Term May See Some Sizable Retracement  Long Term Confirmed Beginning Of A Bull Market-12/2/2013

 
Price did fell below the previous Friday's low, so if you had bought in, then the position should be closed off on last Monday. Then on Tuesday a new sell signal emerged with price closed below the top band and a negative Stochastic. But the signal was not fulfilled on the following day as price failed to go lower than the signal day low. Instead it went back above the top band and with the Stochastic turning positive again.  So I bought in again on last Thursday when price went above the signal day high. As the ADX remains above the DMI which is telling me that this market is still overbought, I would not want to engage in large order and also I would maintain a tight stop for my long positions.
The Stochastic seems to be making another turn downwards while the MACD has been negative. The ADX continues to be flat for the past few days, so it is another one of those listless market mode again. There is already a bearish divergence formed at the Stochastic and MACD, so be prepared for  some possible strong retracement shortly ahead.
 
The weekly chart is still siding with the bull as the MACD continues to rise. The Stochastic stays positive but it is already inside the overbought zone. Though the ADX is still rising and it has reached the 23's level which is confirming that the trend is still intact. But I would still keep an eye on the Stochastic. Do remember this is the weekly chart, the Stochastic tends to mark out the cycles better than the much slow reacting MACD and DMI. Though the bull should be "safe" as long as price can maintain above the top band, but last week's Japanese Candlestick is a Spinning Top, this usually forewarns the bulls may be losing momentum. Since the daily chart is overbought and presence of a bearish divergence, do expect some retracement to come soon.
 

The monthly chart is really giving me confidence on my super bull readings. The Stochastic is now crossing up its 20's signal line. The MACD stays positive and continues to rise. October month's closing is higher than the previous month's and it is above the recent fractal high. So what we are having now is an initial monthly buy signal. I would need December month price to go higher than 2692 to have an confirmation of this buy signal. I also take note that price has already closed above the middle band which is a 20 periods moving average which many traders read it as a bull/bear territory boundary line. The ADX has begun to fall, this is indicating the end of the prior trend.
Summarily the long term chart is finally confirming a new bull cycle, but both the daily and weekly chart is getting a bit overbought. So I would expect some retracement or at best , some range bounding until the indicators flash a new buy signal again.