FCPO - It Is Still Waiting - 3/9/2015

 

The previous week's buy signal quickly lost steam as price went below the top band which would close off our position if you had bought earlier. Another new sell signal is flashed on last Friday when price went below the middle band with the Stochastic turned negative. If price can go lower by the coming week, it would meet my filter rule. But I have been hesitating in making a new trade as the ADX has been extremely dreadful. It has been falling and it is at way down there at 14's. This is a classic confirmation of a listless market.

I would watch the previous fractal low of 2216 would hold, If price goes below that level, then we may see a significant correction.

 

The weekly chart resembles the listless mode of the daily chart as its ADX continues to fall and it is now at 14's. The DMI has been wiggling like a worm with the D+ and D- crossing each other tighter and tighter. Both these 2 are classic confirmation of a listless market. The MACD stays positive and continues to rise above the zero signal line. This is most probably the single one most bullish item found here. The Stochastic has also turned positive. So at least we have both these 2 indicators in agreement. Price went briefly to a new high and above the top band but was not able to hold the position. It came back down and now has closed below the top band. The increasing tightening Bollinger Band is also confirming the current lack of trend.

The crude oil continues to consolidate, maybe that is why FCPO is also waiting. For this market, preference should be placed on the buy signals over the sell.