Cosco – short term economic threats should not jeopardise long term recovery | Technical Analysis | Singapore Stocks

It has been awhile since I last touched on Cosco. During Feb 2011 when I last issued a sell call on technical weaknesses, the stock has tested a significant low of $1.80. That was worsened by the Japan Earthquake which causes much anxiety on a standstill or worsening of the world global recovery. Near term basis, shipbuilding activity and traffic should be moderated with disrupted Japan supplies and cooling measures upcoming for US and China.

Baltic Dry Index is also hovering at year lows region but has shown good signs of recovery into the next half of the year:

20110425 - Baltic Dry Index

On Cosco technical charts, $2.20 will be retested and should call for some initial accumulation. Major support will be at $2.0. Consolidation should happen between $2.45 & $2.10 where RSI & ADX showing weakening bullish signs at overbought levels.

20110425 - Cosco Technical Chart

On the comforting side, activities are pretty healthy with significant volumes by fund traders. Profit taking is occurring with small retail investors and should present opportunities for some initial accumulation.

20110425 - Cosco Volume Chart

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