Sunday, April 13, 2008

Cosco Testing 200 Weeks Exponential Moving Average

A study of the weekly chart shows weekly ranges of more than $1 fluctuation appearing frequently ever since price crossed the $3 mark. Expect this range to contract if price drops and stay below $3. The next few days may see a testing of the 200 weeks EMA support. Support failure here will result in price falling towards the next support at $2.57 the low of the mid May 2007 congestion band. Major support band was formed by the tails of 2 weekly hammer candlesticks during the end of February 2007 and early March 2007 at $2.32 to $2.35 levels. However, if price manage to rebounce from the 200 weeks EMA support line and price crosses back above the $3 mark the upward momentum will challenge resistance gap at $4.02

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