FCPO - Uptrend Intact But Getting Overbought - 3/11/2014

Last week I mentioned about the ADX has gone above the DMI which I usually consider it as the ultimate confirmation of an overbought market. And now even the Stochastic has formed a minor bearish divergence. Of course the warning signals are blinking, but the market can continue to stay "overbought" with price go higher and higher. With such situation, we should begin to tighten our stop or even reducing positions. This is not the time to add on positions. But most important of all is that you should NEVER start to sell the market just because it is considered as overbought. This is something I notice many stock commentators suggesting their readers to  buy in stock just because they are oversold.
As far as the chart is concerned, there is still nothing to say the market is "dying". The price is above the top band and MACD is still rising, the Stochastic stays above the 80's zone, the DMI is also positive. As long as the ADX continues to rise, the trend is still intact. Again since the ADX has now reached 44's , this is also another sign that the market may has got too "hot".
I continue to place my stop at below the top band.
 
At the weekly chart, the bull is still getting all the cheering. Price continues to pull away further from the top band. This is another way to confirm the strength of the bull. all the 3 indicators are still positive and rising. The D+ has now risen to 36's which is also telling us that the buying is strong. The ADX continues to rise and this is confirming the current trend stays intact.
The extreme dry weather continues to fuel the current FCPO bull run.