FCPO -  Pay Attention To New Buy Signal - 2/16/2015

 

After the previous week's glorious up move, the market took a breather last week. Instead of breaking above the top band, price lingered between the top and middle band. I have now moved up my stop to the middle band. The MACD stays positive and remains above its zero signal line. The Stochastic remains positive and rising. The DMI stays positive with the D+ falling back toward the 30's signal line. This means the buyers are taking a rest. But the D- has also been falling, this means the sellers have no intention to stand their ground and fight. The ADX remains flat, so there is still no new trend in this market.

If price can break above the top band, it would mean a more powerful up move has arrived. 


 

The weekly chart did not carry on the previous week's monstrous move, instead it has retraced a bit. But fortunately it has not damaged the setup yet as price still managed to close above the top band. The MACD is still climbing toward the zero signal line and it is almost getting above it. The Stochastic has turned negative again, so we are now having a pair of contradicting indicators. With the falling ADX, I would still call the market as in a listless mode. For the last, the market would need to close higher than 2357 in order for the bull to return in a grand manner.

The crude oil chart is getting more and more interesting. I remain a strong advocate that crude oil should rack rally back upward soon and it would do it in a shock and awe manner. And its rally would bring along FCPO to have fun.