Costco (COST) — nice chart. (July 17, 2014)
I want to look at Costco ( NASDAQ:COST ) today. What’s happening in the Ukraine and Israel really does impact whether people go to Costco ( NASDAQ:COST ) and buy those big massive jars of cashews or whatever else they buy at Costco ( NASDAQ:COST ). The bottom line is this is a stock that had been working, fell into consolidation here, broke down, and now you look at this, the trading boxes are getting higher. So this is a stock that, look at the 50-day moving average, it had also been trending up, then the big downdraft in prices sucked this right down with it, sideways, and now it’s drifting higher. Where is support? It’s right along the 50-day moving average.
The company’s already announced earnings, this stock could drift a little bit longer, I’m not looking at this as a volatility squeeze, it’s about to just break out. What I am saying is, look at this, consumer defensive sector, the stock was down less than a percent today, so many other stocks got crushed, I think this is giving you a buying opportunity. The 50-day moving average is at basically 116.00, 115.95; so this is 80 cents above the 50-day moving average, which has been a pretty good opportunity, a pretty good place to be buying this stock.
So I would watch this, I would buy it, just keep a fairly tight stop, you know, keep a trailing stop say below this trendline here. Or just tuck it away for a long-term hold, because you can look at the weekly chart and you can see the stock has been trending sideways, it’s not broken it’s just consolidating. The stock could fall clear down to 110.00 and there would really be nothing wrong with the stock it would just be trading near the low end of the consolidation. Hopefully you buy it here, it breaks out above 120.00, confirming that this consolidation has pretty much run it’s course and the stock’s ready to move higher; so I hope that helps.
Free Chart