[isatrader]

COSI is another distressed stock that has caught my eye lately due to the volume surges and it has recently moved into the early phase of Stage 1 that we call Stage 1A, and hence it's still got a lot of work to do until it meets the investor method requirements. One of the immediate issues that it has to work through is the significant near term resistance that it has from many years of declining. Also, it may already be significantly above it's 30 week MA, but the 30 week MA has had a very steep declining angle throughout the last year and so will likely take time to level out as COSI develops in it's Stage 1 basing phase. Ideally, it would be good for COSI to put in a swing high to mark the top of the Stage 1 base, and then pullback/consolidate on light volume for months before making a Stage 2A breakout attempt on a dramatic volume increase.

If you scale out to the monthly chart, you can see that it's been declining for the last three years following it's initial recovery bounce from the 2008 destruction, and so has a fair bit of resistance to work through in the longer term, but the initial area to watch is the 30 month MA, which is currently at 2.36, as a monthly close above that is what we look for to accompany a weekly Stage 2A breakout for additional confirmation. So if view the weekly chart with the ichimoku cloud overlaid, you can see that that would put price above the near term weekly resistance zone.

One to keep an eye on in the coming months / towards the end of the year for a possible Stage 2A breakout attempt.