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Costco: Where Do The Buyers Come In?

|About: Costco Wholesale Corporation (COST)

Summary

Our buy on weakness signal.

Our buy signals.

Let's see if they continue.

Costco (COST) was priced to perfection before earnings and earnings were imperfect. As a result price is dropping to bargain levels. When will the bargain hunters come in? "Let's go to the video tape!" In this case the chart below.

ANSWER: Best case scenario at R2 on the chart around $215.

                Worst case scenario at R1 around $200.

CONCLUSION: We will wait for our buy signals to tell us, when Supply peaks and starts improving.

NOTE: See our free annotated charts and footnotes at
stockcharts.com/public/1792807
SID2018 model portfolio:
https://www.marketwat...
ALSO: check our trades at
http://stocktwits.com...
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Send me a message and I will tell you when.

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a short position in COST over the next 72 hours.