This 120m chart of COST shows a pattern that I trade frequently - the ending diagonal. It is a setup that, when identified correctly, can result in sharp moves lower as the stock breaks out of its impulsive sequence. I recently placed a similar trade on INTC that is working well.
As COST grinds higher in a converging wedge, it looks to have "thrown-over" trendline resistance. This is common in ending diagonals as price makes one final push before breaking lower through the bottom of the channel. Initiating a short position at 207.50 for a move back toward 180. A sustained rally through 215 will cause me to reevaluate the trade.
As COST grinds higher in a converging wedge, it looks to have "thrown-over" trendline resistance. This is common in ending diagonals as price makes one final push before breaking lower through the bottom of the channel. Initiating a short position at 207.50 for a move back toward 180. A sustained rally through 215 will cause me to reevaluate the trade.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.