FCPO -  Most Probably Another Smallish Cycle - 2/10/2014

 
A new buy signal came last Thursday when price closed above the middle band with the Stochastic turning positive. I bought in on the next day when price went above the signal day high. The immediate overhead resistance is at 2604 which is its recent fractal high. But price would need to close above the top band first. Both the Stochastic and MACD are positive and rising. The Stochastic is above its 50's signal line which is even more bullish. The DMI has gone neutral (both are at 22's) and the ADX has begun to fall and it has gone below 20's. This is confirming a lack of trend in this market.

If a new buy position is in, I would place an initial stop at below the middle band and move it to below the top band.

 
The weekly chart's Stochastic and MACD stay negative and continue to fall. But the DMI remains positive with the ADX continues to fall. The falling ADX is telling us there is no trend in this market. The Japanese Candlestick is a smallish body Candle that got sandwiched between the top and middle band. This is pointing at more evidence the market is stuck in a sideway mode. As same as last week, I would need to see a breakup above the top band for a new bullish move or a breakdown below the middle band to get the bear moving. The weekly fractal high of 2669 remains important.

As the US Dollar continues to get stuck in a range bound mode, I doubt we would see FCPO goes very far as at the moment.