FCPO - More Power To The Bull- 1/5/2015

 

The market went back to test the top band but it managed to rebound from near that level. The Stochastic is inside the overbought zone and seems to be coming back down. The MACD stays positive and continue to rise. The DMI also remain positive with the ADX continues to rise. I would maintain my stop at below the top band.

 

The weekly chart continues to improve as price stays solidly above the top band. The MACD continues to rise towards the zero signal line. The Stochastic has just turned positive and continues to turn upward. So finally we have both the indicators in agreement with each other. The DMI has also just turned positive, so if i am trading the weekly chart I would buy if price can go above 2308 in the coming week. The ADX is still falling and it has just reached the 20's, I would become more bullish if that one can turn around soon. Of course if price can close above its recent fractal high of 2345, it would be ultimately joyous for the bull.



 

I have been talking here about how I have been "subtly" bullish about this market. It is because I have been staring at the monthly chart thinking that we may soon get a positive crossing from the Stochastic. And we finally got it. Another item would be the MACD, it has not turned positive yet but it is promising as it has turned around and we may see a positive crossing by the current month. A positive crossing while it is below the zero signal line is normally nothing to shout about, but look closely and you will notice it is about to form a bullish divergence which is vital for us to talk about any major/pivotal reversal. Again as in the weekly chart, 2345 level is an important resistance to break. The ADX remains flat, so we may continue to see price sticking around these level until we can get a break above 2345.

I have a feeling that FCPO may be waiting to hitch a ride on a crude oil coming technical rebound rally. No, in the long term, the bear is not yet done with the crude oil, we will see more downside to come. But at present , with all the indicators at their extremity, it is hard to believe that the bear has not been feeling 心虚 with their long steak of selldowns. The market is just waiting for some little news before the sellers start rush out to close off their shorts positions. I sincerely hope FCPO can rally back up as our government may really needed the money.