Cosco not looking good

Evening all,

Recently I have not had much time to come online, so you do not see much updates here. I will probably be quite busy until the end of next week at least. After that, I should be able to resume with 2 or 3 posts each week. I hope to see you all around again. Today, I have a post on Cosco Corp – F83.SI.

In my previous posts on Cosco, I kept a huge upward parallel channel on the chart. Below, you will see that price is now – strictly speaking – under the long channel. I will stop short of saying that Cosco has broken out of a steady, huge channel as I prefer to wait for some more days before considering the breakout a true one; however, I must admit Cosco’s share price is now looking very bearish. Breaking down from a channel is not a good thing.

Apart from a bearish-looking breakout, the chart has showed me other bearish signs as well. I believe very much in identifying chart patterns, and in this case, I have a confirmed double top pattern in Cosco’s chart. I do not like this pattern very much because I do not find it reliable enough for trading. In fact, I think most experienced chartists may also not respect this pattern. I am highlighting it here as it matches with other bearish signs on the chart. Next, Cosco has been rejected at the 200-week MA – not once, but twice. This is certainly a bearish indication; also, the 200-week MA is starting to turn down.

On the daily scale, note that price is now clearly below the ever-important 200-day MA. Further, the 50-day MA is close to crossing down below the 200-day MA. How bearish can you get?

With so many bearish indications on the chart, I am going to hold quite a bearish stance on Cosco. I have added in fibonacci retracements study onto the daily chart below – the high and low taken are the high and low of the huge upward channel. Right now, price is finding support at the 38.2% level. If what we are seeing now is a true breakdown from the channel, we should look for much more downside in Cosco.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

 

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