Costco WholesaleLong
COST - heading into seasonal weakness
COST is a core holding of mine and one that I use technical analysis to continue building. I've reported multiple setups to build a cost position and recently shared the strong seasonal outlook for November.
We have earnings after the close on 12/14, a quad withing on 12/15, and a history of seasonal weakness between December and March. I'll take this opportunity to sell some of the position into strength and look for opportunities for additional accumulation over the next 3 months.
Note on the daily chart that we're just above a range that I targeted on the breakout of a descending wedge. We can also see that price has pivoted in alignment to the fib time zones and that the next one is 12/15 (day after earnings and on quad witching).
On the weekly chart we are at the top of a measured range, which has typically signaled the start of a secondary downtrend.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.