Uptrending stock. Need an entry? Here’s the price on Costco (COST).
Discussed in this article: Costco Wholesale Corporation ( $COST )
I want to define what our range is on Costco ( NASDAQ:COST ). First of all, do you want to own this stock? You’ve got to start with the weekly chart, wouldn’t it have been nice to have owned this stock here, how about anywhere in here?
This stock is trending higher we can see this. The red line is the 20-period moving average, the middle Bollinger Band. So this is a stock, when you’re making your decision, you want to own this stock, I want to own the stock; this is the deal, I want to own it.
But you look at the upper Bollinger Band, just basically resistance here. If you bought it here at the upper Bollinger Band, fine you’re up here. But what’s happened in between? You’ve had these zigzags; you’ve had these pullbacks.
So you’re looking at Costco ( NASDAQ:COST ), you see it today, you have money today, and you want to buy it today; don’t do that, its upper resistance. You’re probably going to see this stock on another strong day, it’s probably going to blast through this $120.00 level. It will probably run through $120.00, and then how much farther is it going to go before it corrects?
Look at the way this stock has traded; it had this big pullback, and a nice run, great. We’re here, you don’t get this part; you don’t get to make money as if you’d bought here. You have to look at this as your starting point, and if you’re using this as your starting point, do you really think that the stock is going to go a whole lot higher before it at least comes into some part of this box, to fill the box?
So my suggestion would be yes, you want to own Costco ( NASDAQ:COST ), but it’s really just not something I think that you want to be owning or buying right now. Wait for a pullback, like I said, it’s probably going to push up above $120.00, but it will come back down to a better buy point, this is just not it.