FCPO - A  Reversal May Be Coming - 4/7/2014

My prior day high stop was hit on last Wednesday. I got a bit excited when the next day price action form a Japanese Candlestick Hammer which is usually  a possible reversal signal after the market has fallen a bit. And price went closed above the bottom band with the Stochastic turning positive. So if you are of the more adventurous type of trader, get ready to buy on coming Monday if price can go above 2665. But if you are the more conservative type , please wait for the Stochastic to cross above the 20's signal line. The MACD has been narrowing its gap and begin turning, but at the moment  it remains negative. The DMI remains negative but the D+ has started rising which is hinting the buyers are back for a fight. The ADX remains flat.

 
The overall weekly chart remains negative as both the Stochastic and MACD are  still falling. The positive DMI is still deteriorating as the D+ continues to fall and the D- rises. This means the buyers continue to lose ground to the sellers. BUT, the most interesting item here is the appearance of a  long legged Doji Japanese Candlestick . Though Candlesticks do not guarantee what next MUST happen (as nothing under the sky is) , but in my opinion, they are usually of more significance when they appear in the longer time parameter charts. As in the current case, it is also of special significance when it appears after testing the important support level of 2604 and  bounced back up. So I am eager to see whether we can get a reversal by the coming week. I am getting excited over this Candlestick as the daily chart has already flashed a possible reversal too.

To me, if a reversal comes true, it would just be another trading signal  which I hope the new trade will be a profitable for me. My last "prediction" of a strong bull had already been fulfilled when market last hit 2900+ which is my minimum target. Of course I still harbor dream of another stronger move as the bigger time parameter charts are still ok for the bull. But what I am trying to emphasize here is buying or selling at the correct timing is essential for investors/traders to avoid losses (paper or real) /emotional drains. Such adversities will happen to you if you had taken the "advises" of the fundamental experts and went in and buy FCPO around the high, a 300+ points retracement will bring a lot of misery to anyone, especially now there have been rains and dry spell "explanations" seems to be evaporating.