FCPO - The Waiting Game - 8/11/2014


The previous week's up move quickly disintegrated as price failed to go higher. Price has been going nowhere for the whole week except on last Friday when it went lower. Both the MACD and Stochastic remain positive and the Stochastic continues to move upward towards its 20's signal line. I would need to see it crossing up above that level and at the same time for the price to close above its recent new fractal high of 2287. in order to call for a new buy. At the moment as the ADX has ticked up again, be careful that the sellers may decide to kick in another round of sell down, which is most probably their final round of game. Meanwhile I would just trade the intraday chart signals for the time being.

The weekly chart remains firmly in the bearish camp. The MACD continues to slide downward. The Stochastic may be inside the oversold zone but there is nothing to show that it is staging a rebound yet. Most important of all is that it has not formed any divergence, as that would mean the sellers remain brave hearted. The DMI stays negative with the ADX continues to rise, so the bearish trend stays intact.

The overall pictures remain almost the same as in the previous week : the weekly chart is firmly bearish with no signs of a possible reversal. The daily chart offers a chance of a possible reversal but it is not of a strong firm one yet. Maybe by the coming week, the market would give me a clearer picture.