COSCO

Cosco is approaching resistance level of $1.47 again. The stock price broke through $1.39 on 8 Jun 09. However bargain hunters emerged on the 9 Jun 09 and the rebound took it back above $1.39. The stock chart has been making higher highs and higher lows since it bottomed out in early March.

Cosco needs to take out the price level of $1.47. If it is able to take out this level on high volume, the next target level is at $1.72 which is the Fibonacci target objective level.

Another thing to note is that one of the substantial shareholders Lee Fook Choy bought 150,000 shares at $1.33 on Jun 10. In addition, Cosco is scheduled to deliver its Sevan 650 round rig at the end of this month.

STI Update

Dow Industrial Average reached a high of 8839 in the opening minutes before succumbing to selling pressure. It lost all its gain and went into negative territory before buyers came in to bring up the index. Market closed at 8768, up 12 points for the whole session.

The non-farm payroll showed a decline of 345000, a better than expected number of job losses. However un-employment rates reached a high of 9.4%. This mixed picture also explains why the market closed near the unchanged mark.


Looking at the STI, it has recovered more than 50% of its downswing from May 08 till March 09. Immediate resistance is at 2571, 2663 and 2745 respectively. Support is at 2283, 2190 and 2094.