As covered in our Dec Outlook, FCPO is still in a bull market correction mode.
According to Day MACD (refer Chart 1, above), FCPO is still in a bull market correction mode as it is still in deadly cross mode. Consequently, we could see FCPO have a correction to 2,600 support. If 2,600 support is broken & MACD still showing deadly cross, FCPO will had a strong bull market correction to either 2,592 or 2,465 support.
However that being said, FCPO is not going for a crash or a yearly bear run as prices are still trading above the red moving average of 2,465. The market is just going through a bull market correction before resuming it’s bull run once day MACD forms a golden cross.
Similarly like what happened on June 25 2012, FCPO formed a yearly bear run signal, but the strong bear run does not come immediately; instead the market had a slight retracement to the red moving average at that time before continuing it’s strong bear market correction. So trend followers, you know what to do, repeat the good work that you had been doing and follow your trading plans. Follow the trend well.
David Lee
(Futures commission broker & equity remisier, Contributor of futures market trend following)
THE THREE /// LINES TRADER (TFM) 