Don't Ignore This Chart

Costco Finally Breaks Out Above Its 15 Month Consolidation Range

Tom Bowley | 

After long basing periods, breakouts can be very significant technical events that lead to powerful gains.  Those invested in or trading Costco (COST) are hoping last week's breakout signals a nice advance in the months ahead.  Three months ago, COST bulls successfully defended key price support and the rally that ensued finally broke major price resistance.  Check out the chart:

The last two weeks did see increasing volume to confirm this latest move higher.  The two key levels of support are now price support near 169 and the rising 20 week EMA, currently at 159.53.  Seasonally, February and March have been decent months for COST over the past 20 years so historical performance shouldn't be a hindrance at all.

Happy trading!

Tom

Tom Bowley
About the author: co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years. His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading. A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015.
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