FCPO - How Real Are The Selling ? -7/7/2014


The new sell signal flashed on the previous Friday became good on last Monday when price went below the signal day low. I went in and sold and now will place my stop above the middle band. After pausing for anew days, price has gone below the bottom band on last Friday. This may mean price is getting on another round of selling.
The MACD manages to stay positive though it has been turning downward. The Stochastic continues to slide downward, it has just crossed below the 50's signal line which may bring more sellers out. The DMI stays negative with the ADX goes flat at 20's. The flat ADX reflects the lack of intensity in the market.
 

 

The weekly chart previous week's Japanese long top shadow line Candlestick forewarned the current market's fall correctly. Price went below the past week's low. The MACD continues to slide. The Stochastic is still inside the oversold zone but there is no buy signal yet. The DMI stays negative with the D- whipping up . This means the sellers have been getting wild again.
But as I mentioned last week that I have been harboring some vague bullish thoughts on this market. The weekly Stochastic has been getting interesting as price is coming down but the indicator is not. instead it is going higher. I would take this as an encouraging sign the sellers may be faking it this round. But of course, this does not mean you can go start buying now as the sell signal at the daily chart is not done yet. I would need to see it crossing up above the 20's signal line to get really excited.