The nasty, slow-but-sure downtrend in Cosco Capital (stock symbol: COSCO) from mid-October has given way to a decent bounce shortly after the trading month of February started.
Moving Average Convergence Divergence (MACD) rose along with the latest price advance, and its histogram has pulled back as price failed to break 9.50 in recent days.
The stock reached a new high today at 9.46 (up 0.86 percent on the day). This comes after COSCO posted a 7.47 multi-quarter low on February 5, a week or so after my post. Resistance lies ahead at 11-12 area. The short-term bullish bias will persist as long as price is above 9.00.
The advice to stand aside proved sensible in January. But in the next 3-8 weeks, you could look for opportunities to get in at a good price. As always, focus and depend on price action.