FCPO - Bull Getting Stronger - 1/12/2015

 

The market continued to move higher and broke 2 vital daily and weekly fractal highs all within 2 days. The MACD is positive and continues to rise. As it is back above its zero signal line, it is confirmed to be back in a bull cycle. The Stochastic is inside the overbought zone. I would pay some attention to this as the ADX has been rising but is still below the 20's level. I would maintain my stop at below the top band.

 

The weekly chart completed its buy signal that came out from last week's DMI crossover. Most important of all is that price managed to close above its recent fractal high of 2345. Both the Stochastic and MACD stay positive and continue to rise upward. I would begin to pay more attention to the MACD as it is approaching its zero signal line. The positive DMI stays healthy as the D+ continues to swing upward with the D- going lower. This means the buyers are rushing in with the sellers withdrawing. The ADX stays flat for the second week, reacting to the price hikes. A new ADX should confirm the current new bull cycle.

I continue to get even more bullish about this market as the longer term charts are beginning to change, so if price can continue to rise or even stay around this area, the longer term chart will almost confirmed to be flashing new buy signal. The longer term chart's buy/sell signals are very important to terminal changes in market's cycles.