High gasoline prices will usually hurt most leading retail stocks eventually. Gasoline prices just reached a new three year high on March 23, 2012. High gasoline prices are considered a direct tax on the U.S. consumer. Most investors know that consumer spending accounts for roughly 70.0 percent of the gross domestic product in the United States. The important retail sector has remained very strong. Since December 2011, the important Market Vectors Retail Holders Trust (NYSE:RTH) has traded higher with the price of gasoline. In this week's report, we shall examine two leading retail stocks which continue to remain exceptionally strong at this time.
Costco Wholesale Corp (NASDAQ:COST) is one of the leading membership based warehouses that offer branded and private label merchandise in the United States along with various countries around the world. COST stock closed at $90.27 a share last week. The current price is just below its 52 week high of $91.60. The stock is in a confirmed uptrend, trading above the important 50 and 200 moving averages. Traders should watch for important daily chart resistance around the $94.00, and $99.00 area. Should the stock pullback from current levels there should be daily chart support around the $88.30, $86.30, and $85.00 levels. Place these levels on your charts and trade them accordingly.
Bed Bath & Beyond Inc (NASDAQ:BBBY) is another leading retail stock that focuses on home furnishing. This stock has soared higher since August 2011 when the stock was trading as low as $48.75 a share. This stock has definitely benefited from a surge in housing and mortgage refinancing, caused by the low interest rate policy in the United States. Traders can watch for near term resistance around the $66.50, and $69.50, and $74.00 levels. Should the stock pullback from its current price traders should watch for near term support around the $63.25, $61.00, and $59.00 levels.