04/03/23
Buying toilet paper, toner and laundry soap at wholesale prices is great – but today we are talking what could be wholesale stock pricing.
I’ll let you be the judge – but this might be a better deal than the hot dog and soda combo.
COST is a relatively “easy” stock to trade when we’re trending, but if you’ve paid attention over the past ten to twelve months, that dog won’t hunt..
But if things are turning around, then this is a good one for the long haul…
I know… Busy chart.
Frankly, sideways markets can be tough to analyze and much of what you do will be based on short-term moves. We’ll keep it that way until we have more information.
First off, I’ve got a Fibonacci Retracement drawn from the highs in April 2022 to the lows just a month later in May.
This thing took more than 30% off the top, dropping from over $600.00 to $406.51…
From that bottom, COST put in a gap to the far left which became a level of support.
Fast forward to the right, we’ve got the same deal at the next gap…
Now, the stock bounced down from the dotted green line. That’s the 200-day simple moving average.
All moving averages are still stacked bearish with the 50sma and 20sma in blue and red, respectively.
This doesn’t mean it won’t get a lift, considering the current state of the market. It’s just something to keep in mind…
If I were to get long here, my stop would be set at the green box, so nothing under $483.20.
The first target would be the top half of the red box near ~$505.00. Expect a pullback from there.
Ultimately, I’d eye the 50% Fibonacci level around $510.00-$512.00 and scaling out a bit more close to $520.00.
That’s the red box at the top.
That $520.00-$525.00 area has been a real sticking point for COST…
But one last note for the long term folks- I marked the clean highs at $542.18.
If that gets taken, $565.00+ should be on the way…
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