Hongguo is going to breakout from a triangle but no clear indication where the stock price will go after the breakout. The minor up trend may not be sustainable because it is showing volume price divergence. Need to see where the next few candles go and whether it has enough volumn to support the trend.
What goes up must come down, what come down must go up! Although Cosco’s stock price has been beaten down recently, it has very big upside potential in the long term although the current fundamental is not really fantastic.
There are signs that Cosco will be breaking out from the triangle soon. The gyration of the wave is getting smaller as every day goes by. The stock price is currently testing its 20D & 50D MA support line. If it breaks out from the triangle and move south, the next support line is $1.15 (61.8% Fibonacci Retracement). If it breaks out and move north, $1.45 will be a strong resistance.
3 Years Historical High = $7.9
Current Price = $1.25 (16% of the 3 years historical high)
Synear had a breakout from triangle and closed above $0.28 resistance. If the stock price can hold above this resistance line for the next few days, $0.28 will become a very strong support line.
