Don't Ignore This Chart!

Costco Finally Breaks Out Above Its 15 Month Consolidation Range

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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: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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