Cosco – Preparing for big movement

Trend: Uptrend (Ascending triangle), 20ma slightly flat, Macd slightly above 0

Support: 1.48 (20 & 50 & 100ma), 1.42

Resistance: 1.56, 1.63

Observations
Candlestick – Doji.
Histogram – 3R. No Bearish divergence is seen.
RSI – Around 50%. No Bearish divergence is seen.
Stochastic –Bullish cross not seen yet.
Bollinger Band – Trading at mid band. Squeezing.

Conclusion:
Cosco has been trading narrowly for the past few weeks and the range starts to get narrower over time. This kind of movement can be seen as a possible chart formation. Looking at the chart, it is likely to form an ascending triangle formation.
For the trend to turn into an uptrend and to confirm the ascending triangle formation, it must break 1.56 resistance level. Currently, looking at the indicators, there is still no bullish signs yet to signal that there is possibility of breaking the resistance level. But if 1.56 level is to break, based on the ascending triangle price objective, it could give an upside objective of 1.74. But in order for Cosco to reach 1.74, it must also breach the next resistance of 1.63 level.
Base on current price level, Cosco is now trading at a strong support level of 1.48 where there are multiple confluences of the moving average lines. Hence, there might be a possibility of a formation of higher low over here. If a higher low is formed over here, there could be a higher chance of confirmation of the ascending triangle.
In conclusion, with the formation of ascending triangle, there could be a possibility of uptrend continuation if 1.56 resistance level breaks.

What to watch out for this week:
1) Breakout of 1.56 resistance with high volume
2) Breaking of 1.48 will fail the formation.

Trading strategy to adapt right now:
- Wait for a bullish signal to form at 1.48 level.
- Wait for breakout of 1.56 level with high volume.

*Disclaimer applies