Cosco Corp

I went dinner with my wife tonight at Hippn after our Yoga session. I think I mentioned this restaurant before and it is one we frequent because it is just below my mother-in-laws place I chat regularly with the owner and his wife, I got to know them better nowadays.

Tonight Cosco Corp again came into the conversation. He feedback that the peak was 1.37 and he exited with profit at 1.28. But he was curious as to why it kept falling. Base on my memory of the rough pattern, I brought out that Cosco might be hitting 1.03 if it is doing a Zig Zag, considering it has been at 1.20 for quite some time. Anyway, I promised to check it out for them.


Fig 1 Cosco Weekly Chart

As I look at the chart from March 2009 till now, I find it quite confusing in wave count. It simply looked wierd. So what I did was to zoom out to a bigger picture and everything became clearer. Cosco was at a high of 8.10 ( no wonder the greedy SGX put it into the STI portfolio then ) and y Oct 2008 it started its fall all the way to 0.605. The whole move was in fact a 5 wave pattern. So base on Elliotts theory which counter wave is a 3 wave pattern, the 5 wave pattern can only be counted as A. Therefore the move started in Nov 2008 was actually the start of B wave, and it continued on for over a year, a year and 4 months to be more exact.

So far the wedge objective on Cosco should still stand with target of 1.50. I believe the present move downward is the C of the counter wave, support is found at 1.15 which explains its stop at 1.16. But indicators wise, it is not so pleasent, both RSI and Stochastic are heading south and I won't put much hope yet for the next wave to start.