Cosco the laggard

I went for a dinner the other evening at a new restaurant around Block 72 of Pipit Road. It was a small eatery called Hippo Family Restaurant. It was named after the owner's son's favourite toy. The food is good and the price I guess is reasonable, considering SGD3.50 for fried noodles, rice and stuff while SGD4.50 for a single dish. Of course with this price one should not expect how big a plate it is. Still the taste is up to my standard for such a price. The restaurant was a crowd attraction since it opened.

While striking a conversation with the owner's wife, happened to be Chinese national, she mentioned to me that she worked in Cosco for the past 8 years. This got me interested into this counter. Turned out this counter is quite a popular topic on ChannelNewsAsia.com market forum.

One thread started in January 2007 and lasted 1,000 over pages. I did a brief follow up on the thread and noted that the thraed starter predicted Cosco to move since January 2007, yet it was only until mid 2007 that Cosco started to ramp. Another thread has the thread starter complaint that Cosco was a total disappointment because it had not even moved after all these while.



Fig 1 Cosco since 2000

I also noted that this counter has been in bottom formation since October last year. Back tracking further, the whole life of Cosco seems to be a turn off for traders(noting the flat performance since 2001-2006, then 1st half of 2007). So it seems like Cosco is a real laggard and boring but if it moves, it rockets.

So what has Cosco been doing lately?



Fig 2 Cosco Daily chart

Like always, it dragged its feet since October last year until recently (May 2009) that it started to have some movement and eventually a tringle. The problem now is that it is dragging its feet and very reluctant to break out as demonstrated the last few days, it kept dropping back into the triangle.

Today is of no exception, it broke out to 1.33 and then returned back to 1.30, below the triangle envelop. I can't really blame this guy because it just happened to meet the Gann Grid Resistance today forcing it to retreat. the worst thing is that this guy now formed a shooting star indicate a down tendency, a confirmation is required tomorrow (opening lower is part of the indicator).

The break out point as read the last few days were SGD1.301. My RSI and Stochastic is not helping neither, one says up one says reversal. So tomorrow is a day of monitor for this counter.