Cosco had been one of the strongest stock to rally during this upmove. Why is it so? Look at the down trend from mid Jan to mid March and that is the clue. The angle of slide is about 45 degree which tells me big players are planning for a big bull move. Normally an angle of 45 degree should be on a high alert for investors as a rebound could be fast and furious as in the case for Cosco.
Observe the circled area, these are areas of breakouts where public participation was stimulated by big players. Of course, big players have already bought at the bottom and the reason for these breakouts are to increase Cosco's visibility and to encourage public participation so that once a well define resistance level is hit, big players could then unload the stock to the unwary public at ease.
I still have not seen signs of huge profit taking or short selling. However i believe Cosco's big resistance level is between the 2.34-2.38 region. The risk and reward should now favors the bear side.
Ronald K
