BullBear Trading: Stock and Financial Market Technical Analysis

The Chart That Told Me To Short Costco Wholesale Corp (NASDAQ:COST)

Costco Wholesale Corporation (NASDAQ:COST) was upgraded yesterday. Mind you, this came after a run in the stock from $154 to $188. For some reason, an analyst thought it was the right time to upgrade Costco after a huge run like this (I don't get it). Anyways, the stock opened higher and then sold off. The reason for the reversal was because the stock slammed into a great resistance trend line (as seen in the chart below). This triggered my short. This is a no-brainer trade in my opinion as the stock was so insanely overbought that it was a huge pullback opportunity. Add in the massive trend line and it likely is a recipe for profit.

Gareth Soloway

Views: 21

Reply to This

Join BullBear Traders

Free 30 Day Trial
No Credit Card Required


Steven Vincent's market analysis is published on:

Steven Vincent's opinion is polled every week for the Birinyi Associates
TickerSense Blogger Sentiment Poll

© 2018   Created by Steven Vincent.   Powered by

Badges  |  Report an Issue  |  Terms of Service