Just when I thought Cosco's bull campaign was ready to go, I got a huge surprise from it on May 27th 2011. My entry price was 1.94 on 30th May 2011 when it reacted. That was my trading plan, to buy when it reacts and not banking it on breakouts. I knew 1.92 was a huge support because i switched to the minute chart, so when it reacted to 1.94, i couldn't wait any longer and bought. On my wildest dream, when I really thought Cosco was ready to once again rally to at least 2.0+, my expectation was inundated by the heavy influx of big players selling. Upon sawing that and feeling malaise, I managed to sold it at 1.98 and took a 4 cents profit. This influx of heavy sellers chagrined me deeply because it did not justify my risk taken for an expected reward. From that day, I knew the rallying power for Cosco has been greatly diminished. For it to rally again, either a panic selling, big volume of buying activity or some form of accumulation would need to take place.
To trade Cosco in the near term, I had already drawn out my trading plan on the chart above. I will watch if it hits the support at 1.81 and breakdown further. If it does breaks down further with less strength and revive back up, I will then look to buy again heavily with the big buyers.
Ronald K
