COST 6/12/22COST – Daily chart analysis
Better start loading up on those Kirkland products now.
COST started the continuation of its Uptrend back in Jun.’21
On Jan.’22, Price reached all-time highs at 570 just to watch price tumble down to 463. By then, price also broke down from the trend supporting 50ema. That signaled the possible end of Uptrend and the entrance of a sideways market.
By Mar.’22, price bounced back above 50ema and looked to continuation its previous Uptrend.
Price continued its up move and broke past all-time highs reaching 607. It looked like COST was going to continue in its Uptrend.
The breakout was short lived. By end of Apr.’22, price fell back down below previous all-time highs of 570 and closing below 50ema.
The breakout has been deemed a “false breakout” and The Uptrend was lost. COST has officially entered a sideways market.
We saw a breakdown of this sideways range by mid Mar.’22.
After this move, the sideways range would now be classified as a Distribution stage.
Price has also lost the long-term uptrend by closing below the 200ema.
Price has since pulled back to previous support and looking to turn it resistance.
It is also rejecting the 20ema. This signals the trend (possible downtrend) getting stronger short-term.
Two days ago, we had a “Shooting star” candle stick at resistance with the last day candlestick closing below the lows. This is my cue to enter trade short.
Will be taking short trade to the swing low of 406 but I’m expecting price to break lower. The lower lows will confirm the start of Downtrend for COST.
Entering trade short.
Entry: 463.31
Stop loss: 507.46
Target: 406.26, +12.31%, 1.29 RR ratio
