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.

US Market

Market continued to rally higher in May. The upward momentum seems to be slowing down as the market hit critical resistance level.

The S&P500 index is approaching its 200 day moving average. The market has been going sideways for the past few trading sessions with the index moving in a band of 880 and 930 levels.

The index has rebounded from its 20 day moving average and seems to be moving towards the upper Bollinger band.

Next week should see the market testing the 930 level.

STI

STI made a spectacular recovery from its March 09 lows. The index climbed from a low of 1455 to reach a high of 2283 last Friday, a gain of 56%.

Technical indicators are showing a positive picture. The 50 day moving average has made a crossover with the 100 day moving average. MACD line is above its signal line. +DI is above the –DI with an ADX value that is above 30. Continuation of the bullish trend looks likely.

STI Update

We have a pullback of the index this week. STI dropped from 1896 to close at 1852 for the week. The index went below the 61.8% retracement level on Tuesday but was able to snap back from the losses.

As long as the index is able to hold above 1754 level, we still have a pattern of higher highs and higher lows. This bode well for the bulls.

The 50 day moving average is upward sloping and the index is still above this moving average line. Bears will not be aggressive in shorting the market with an upward sloping 50 day moving average. The bigger bears will come to the market if we see the index dropping below this average line.

One of the worrying sign is MACD indicator. This indicator just made a cross below its signal line.
Support level is at 1813 and 1754. Resistance is at 1868 and 1950.

STI Update

STI index retraced the complete downswing from 1780 to 1455. The index fell 13 points on Friday.

The index has stayed above its 50 day moving average for 5 trading days now. Any fall is healthy if the index can stay above its 50 day moving average.

A similar situation occurred in Jan 2009 where the index went above its 50 day moving average only to make a new low of 1455 on 10 Mar 09.

A bullish scenario will be for the index to fallback to its 50 day moving average before making a bullish move that takes out the high of 1780.

Support level is at 1711 and 1657 respectively. Resistance is at 1780, 1844 and 1959.

US Market Update

Dow Jones rebounded from its low of 6440 set on 9 Mar 09 to end at 7278 yesterday. That is about 13% rebound in the span of 2 weeks.

The rebound has taken the index right up to its 50 day moving average. Last night the market was not able to take out the 50 day moving average. That is not a good sign. However, it may turn out to be just a pause before the index attacks its 50 day moving average again. A lot will depend on whether there is any good news to lift the market next week. The index has fallen back into its downtrend channel and if it is not able to go above it's 50 day moving average next week, the downtrend will resume and index may test the low of 6440 again.

The 7392 level now serves as a critical resistance that the index needs to overcome in order for the rally to continue. Support level is at 7041.

This is not the time to establish huge positions. It is best to let the market decides which way to go below going in for the ride up or down.