Cosco 050808

The last time we saw Cosco taking such a dramatic plunge was on 10 apr this year, together with what was probably a record volume transacted. Today's plunge was almost equal in price difference but volume was less than half.

Where do we go from here ? Will history repeat itself ? Nobody really knows as the conditions now may not be the same as in april. But as they say, history usually repeats itself as there will always be some sort of cycles. So, we can only rely on trendlines. But how would we know which ones are accurate or reliable ?

There's no sure win formula to draw a 'correct' trendline. Only time and experience will tell. Main thing is you need to be nimble and spot the correct one out of the many you've drawn. It also helps if you keep a record of the trendlines you've drawn. That's why I put it down on my blog, so that I can go back and see my own analysis.

Cosco broke the 1st long term downtrend support (mid pink) today. It also broke the 2.85 support (green --), which was the low it hit on 17 mar. Cosco almost hit the 2nd long term downtrend support (low pink) before recovering slightly to close right on the 2.74 volume support (green ...). Actually, the support is from 2.74 to 2.75 as most of the volume was done around this region.

If Cosco opens above this support (green ...) tomorrow, we could have a rebound, which will probably be a small one, with the upside limited by the 2.85 support-turned-resistance (green --).

If Cosco opens below the 2.74 support (green ...), we could see it hit today's low of 2.65 again.



For tomorrow :

Support @ 2.74, 2.65, 2.60 (low pink), 2.58 (low red)
Resistance @ 2.83 (mid red), 2.85 (green --), 2.87 (mid pink), 2.98 (red --), 3.03 (pink --)