COST trade ideas
COSTCO Strong buy opportunity on a 2-year old fractalPattern: Channel Up on 1W.
Signal: Buy as the price broke above its Resistance (and November 2020 High), in a similar sequence as the April-May 2019 fractal. Even the RSI sequences are identical indicating that the price is breaking outside of this consolidation pattern.
Target: Within the 1.5 - 2.0 Fibonacci extension zone (as in 2019).
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COST broke out of a long term resistance. Can it hold?It's been a few days since COST broke out of the long term resistance of $389.58 that was forming since November 2020.
The question now is, can it hold?
Two reasons why I think it can.
1. It consolidated after a move higher and made a new 52 week high
2. Its expected to do well in the coming year.
Now, looking at its past performance I think COST will come back to retest the $387.60 to $389.58 range before moving higher.
The main reason why I think this is because the breakout didn't have a large amount of volume kicking it higher; and because the follow through also doesn't have a lot of volume.
Final thought:
COST did break and I think it'll continue to move higher but not before retesting the broken resistance.
This is one to keep an eye on for sure.
3 U.S. Stocks That Appear Overextended To the UpsideThe following names appear overextended to the upside and may be due a retracement, creating a short term shorting opportunity.
Nvidia - we recommended the name on radio at $527 on 16/03. It's since been a strong performer, closing at $762 on Wednesday. Note the bearish divergence as per the 7-day RSI.
DocuSign Inc. - Over a 7-week period, the stock has advanced from $180 to $274. If $272 fails to hold then we could see a move back to the low $250s.
Costco Wholesale Corp. - Trading near multi-month highs, the higher price (and 22 June breakout) is not being confirmed by a higher 7-day RSI i.e. bearish divergence. Failure to hold $389 should see a move down to ~$375.
*Any failure to hold the prior day highs should be seen as an early signs of a slowdown in upside momentum.
Breakout on costco PT 392.I see costco breaking out to 392, this week will determine that.
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Do your own research.
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$COST with a Neutral outlook following its earnings #Stocks The PEAD projected a Neutral outlook for $COST after a Negative Under r reaction following its earnings release placing the stock in drift D
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