EDITED: Costco Reaches Price Channel Resistance
COST is currently resting on the resistance line of a price channel that it has been in for 384 days. I would wait a couple of days before entering a short position for two reasons. The first being that it could break through the resistance line, and the second being that the .5 trend based fib is at 107.48, so I would wait a couple of days to see if it reaches that, then expect the reversal to take place. Many traders (including myself) think that the market is in for a correction in the very near future. This would be a good play if you're unsure on your outlook of the overall market, as COST should go down whether SPY has its correction or not.
Entry Point: 107.48
Exit: 99.5
Profit: 8.02%
EDIT: The edit made to the chart was a slight change in the slope of the price channel because the first one was a little off, which made the .5 trend based fib level outside of the price channel, when it in fact should be in the price channel.
Entry Point: 107.48
Exit: 99.5
Profit: 8.02%
EDIT: The edit made to the chart was a slight change in the slope of the price channel because the first one was a little off, which made the .5 trend based fib level outside of the price channel, when it in fact should be in the price channel.
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