Costco Wholesale Corporation, together with its subsidiaries,
operates membership warehouses. The company offers branded and
private-label products in a range of merchandise categories. It offers
candy, snack foods, tobacco, alcoholic and nonalcoholic beverages, and
cleaning and institutional supplies; appliances, electronics, health and
beauty aids, hardware, office supplies, cameras, garden and patio,
sporting goods, toys, seasonal items, and automotive supplies; dry and
institutionally packaged foods; apparel, domestics, jewelry, house
wares, media, home furnishings, and small appliances; and meat, bakery,
deli, and produce. The company also operates gas stations, pharmacies,
food courts, optical dispensing centers, one-hour photo centers, and
hearing aid centers; and travel businesses. In addition, it provides
business and gold star (individual) membership services.
To review Costco’s stock, please take a look at the 1-year chart of
COST (Costco Wholesale Corporation) below with my added notations:
From July through October, COST formed a nicely defined rectangle
pattern with a $120 resistance (blue). That resistance was also the
52-week high. After breaking through that resistance in November, the
stock moved higher as expected. Now, as can commonly occur, the stock
seems to be pulling back to the old 52-week high breakout point. The
$120 that was previously resistance should now act as support if the
stock gets there.
The Tale of the Tape: COST broke out to a new
52-week high and has now pulled back. A long trade could be made at $120
with a stop placed below that level. A break below $120 would negate
the forecast for a continued move higher.
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