Costco Wholesale Offers An Attractive Entry Price (Technical Analysis)

Walter Zelezniak Jr
4.79K Followers

Summary

  • Costco Wholesale Corp has broken out of a symmetrical triangle formation and is showing bullish momentum with institutional buying support.
  • The trade offers an acceptable risk to reward ratio of over 5, with a price target of $715.86, entry price at the current level, and a stop loss at $475.
  • One concern is COST's underperformance compared to the S&P 500 index, suggesting investors might be better off buying the index instead.
Bull and bear market

Kameleon007

Costco Wholesale Corporation (NASDAQ:COST) offers an attractive entry price.

In this article, I will outline my thesis for buying Costco Wholesale Corp at the current price. By analyzing Chart 1 I will outline a trade thesis, identify an entry point, a stop loss point, and

This article was written by

4.79K Followers
As an individual investor nearing retirement I am trying to build my financial assets in order to have a fulfilling retirement. I am interested in trading both long and short; or at least using inverse ETFs, to take advantage of market declines. Having long term and short term trading strategies, proper execution of my trading plan, and absolute investing results are my goals. I see my articles as a way to keep me focused on developing winning trades. I also expect to learn much from the feedback that is provided in the comments section.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of COST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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