02-12-13
Technical Outlook:
Third continuous higher weekly closing at 2,654 (12 points higher than prior weekly close) for CPO with RSI hovering around level of 63, ±DM offer no sign of technical correction at the moment however ADX is slipping towards level 30 directing weaker bullish trend hence higher possibility to enter into consolidation period. From the daily chart, closing above 20 days SMA show supporting from the buyer, however frequent converge and diverge on daily MACD might indicate equal bargaining power between buyer and seller since 11 Nov.
Hourly chart RSI tumbled down to 57, –DM looking to curve up, +DI and ADX are trending down and MACD is converging. These all are pointing to the direction of technical correction and lack of buying powers. Similar pattern was found also in 30 minutes chart, which close rest exactly on supporting line drawn from previous two lower points.
Trade Recommendation:
Intraday traders are advised to short around 2,660 with stop loss at 2,690 and target profit around 2,630 to ride on the short term bearish outlook, extra attention need to be paid if any strong rebound which could subsequently commence another bullish trend. Overnight traders are advised to long around 2,625 which is the second supporting pivot point.
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