Profit taking seems to be a sensible action for Cosco!

On 13/Apr, Singapore shares ended lower as investors took profit on blue-chip stocks and small cap companies that had rallied in recent sessions. 

STI ended 5.57 points (0.2%) lower at 2971.6 points with 2.02 billion shares traded compared with 2.65 billion Monday. In the broader market, losers outnumbered gainers 314 to 191. "I'm not too positive on the market at this stage;" an analyst at Singapore brokerage said, adding that "the recent move (by the STI) to new highs (for this year) was not that convincing."

Most regional markets started the day negative after the announcement of Alcoa's lackluster earnings report, although the Dow Jones Industrial Average closed above 11,000 for the first time since September 2008 on Monday night. The announcement came after the market closed and Dow Jones Industrial Average futures were down nine points in screen trade.

In addition, Cosco (F83.SG) close higher at S$1.73 with HIGH VOL of 57 millions traded (4 times average) clearing S$1.70 for first time since September 2008, This strong buy up is supported by the news that it has received two shipbuilding contracts from an Asian ship owner worth about CNY530 million, or about S$106 million.

Important Resistance of Cosco: $1.82

Immediate Support of Cosco: $1.54

RSI: VERY OVERSOLD @ 95%

Short term traders are encouraged to take profit in the next few days as the RSI is much oversold and the BUY UP VOL has been diminishing from 72.7 million Monday to 57 millions Tuesday.