05-12-13
Technical Outlook:
Daily closing above the trend line and above 20 days SMA at 2,656 confirm the continuing bullish trend in CPO. Although ADX trending down to 36, which is an overall indication of weaker trend, however with no other sign of reversal or correction, the bullish formation shall remain strong with RSI going to 62.
Hourly closing is resting above 20 SMA and back within the channel right after the false breakout yesterday at 2,619. We believe that another bullish trend will be coming as MACD at reading of 2 and diverging above level of 0, +DI has just crossed –DI and RSI looking to try level 70. We look for confirmation at 30 minutes chart, the +DI trending downwards could be a sign of quick correction before the rally starts again.
Trade Recommendation:
Intraday and overnight traders are advised to long around 2,640 (Hourly SMA with Period 20) with stop loss at 2,600, the well supported level which has been tested couple of times before, and target profit at 2,680.
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