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

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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