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COSCO Corporation (Singapore) Limited is an investment holding company. The Group owns and operates ships. Its shipping-related businesses provide supporting services to the COSCO group, such as shipping agency services, ship repairs and container depots. The Group owns and develops property and engages in general trading.
Stocks that are property-related have taken a bashing since October last year and this includes Coscocorp, which one of its businesses is in property. The share price fell from a high of around SGD$8.00 in October last year to a low of around SGD$2.80 in March this year. That translates to a staggering 65% fall from the high. The price closed at SGD$3.37 on 2nd of May 2008.
Technically, the price may have bottomed out at this level because it formed a double bottom pattern on the chart. The pattern also formed a resistance level at SGD$3.92, which is also the confirmation level of the double bottom pattern. Therefore, the down trend is expected to change if price breaks above this resistance level.
The momentum indicators like the RSI and MACD indicate that there is a high possibility that the price can go higher. These indicators indicate strong momentum in the current short term up trend. If the price is able to break this resistance and confirms the double bottom pattern, the projected price is at SGD$4.94.
As long as the price is able to stay above the support level of SGD$2.80, accumulation whenever there is a dip in price is considered low risk. The short term target should be at SGD$3.90 while longer term target is at SGD$4.94. Both are projected targets based on technical analysis.
Stocks that are property-related have taken a bashing since October last year and this includes Coscocorp, which one of its businesses is in property. The share price fell from a high of around SGD$8.00 in October last year to a low of around SGD$2.80 in March this year. That translates to a staggering 65% fall from the high. The price closed at SGD$3.37 on 2nd of May 2008.
Technically, the price may have bottomed out at this level because it formed a double bottom pattern on the chart. The pattern also formed a resistance level at SGD$3.92, which is also the confirmation level of the double bottom pattern. Therefore, the down trend is expected to change if price breaks above this resistance level.
The momentum indicators like the RSI and MACD indicate that there is a high possibility that the price can go higher. These indicators indicate strong momentum in the current short term up trend. If the price is able to break this resistance and confirms the double bottom pattern, the projected price is at SGD$4.94.
As long as the price is able to stay above the support level of SGD$2.80, accumulation whenever there is a dip in price is considered low risk. The short term target should be at SGD$3.90 while longer term target is at SGD$4.94. Both are projected targets based on technical analysis.
Daily Coscocorp chart as at 2 May 2008, using NextVIEW Advisor
Article by Benny Lee
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