Cosco 200508

Cosco today formed a Gravestone Doji. Although Cosco managed to break the uptrend resistance (upp blue) and 3.62 resistance (red --), it hit the 3.70 neckline before plummeting back down to the opening price.



Since Cosco was on an up trend prior to today, the Gravestone Doji would most likely signal a trend reversal as the Gravestone usually represents the 'graves' of the bulls that have 'died' defending.

The Bearish Gravestone Doji Pattern has more bearish implications than a Bearish Shooting Star Pattern. The longer the upper shadow and the higher the price level, the more bearish the implications of the Bearish Gravestone Doji Pattern will be.

We still need a confirmation the next day to be more certain of the trend reversal. We may see Cosco opening below the Gravestone (below the downtrend resistance - low red), and the larger the gap down, the stronger the confirmation.

For tomorrow :

Support @ 3.59 (low red), 3.53 (low pink), 3.51 (mid blue), 3.50 (low green), 3.48 (blue --)
Resistance @ 3.62 (red --), 3.63 (upp green), 3.66 (upp blue), 3.68 (upp pink), 3.70 (upp red)

Good Luck !!