Since the ATH last April
COST
has been beaten up after earnings. It has dropped 5-10% from the close prior to earnings to hit a post earnings low within 3-4 weeks before recovering to resistance at the descending trendline. The green upward trendline aligns to the bottom of the overall trend for the past few years. Consolidation patterns like these typically end with a larger move up/down. The longer-term outcome will likely be dependent on how the market feels about the consumer staples and discretionary sectors. In the short-term, this chart highlights an opportunity to build/accumulate toward a position within the near term trend, assuming that this behavior continues until there is an overall change in sentiment. Adding ~$462, targeting $488-500 for resistance, and a stop at $442, and reaccumulation $390-400.
COST
has been beaten up after earnings. It has dropped 5-10% from the close prior to earnings to hit a post earnings low within 3-4 weeks before recovering to resistance at the descending trendline. The green upward trendline aligns to the bottom of the overall trend for the past few years. Consolidation patterns like these typically end with a larger move up/down. The longer-term outcome will likely be dependent on how the market feels about the consumer staples and discretionary sectors. In the short-term, this chart highlights an opportunity to build/accumulate toward a position within the near term trend, assuming that this behavior continues until there is an overall change in sentiment. Adding ~$462, targeting $488-500 for resistance, and a stop at $442, and reaccumulation $390-400.