Buyers Jumping Out In Bulk, Costco Wholesale Corporation (NASDAQ
On Thursday, shares of Costco Wholesale Corporation (NASDAQ:COST), had a major reversal, after an initial push higher. This move was made on the back of their earnings report which was viewed as positive by Wall Street. This reversal in the price of Costco Wholesale Corporation (NASDAQ:COST) put a topping tail in place on the daily chart, which represents buyers exhaustion.
The initial downside projection for Costco Wholesale Corporation (NASDAQ:COST), is around the $121.00 area. Should the right pattern form, shares of Costco Wholesale Corporation (NASDAQ:COST), could decline much further. The beauty of this possible short set up is that we will have a well defined stop loss level known prior to entering the trade - which is a key factor to successful trading. The level which would void this trade and where you should exit for a small loss, will be any daily chart time frame close above Thursday's high. The risk/reward ratio could not be more appealing for this trade. I will be watching and waiting for the perfect time to enter this trade, when I do, I will alert our members at the right time to act.
The initial downside projection for Costco Wholesale Corporation (NASDAQ:COST), is around the $121.00 area. Should the right pattern form, shares of Costco Wholesale Corporation (NASDAQ:COST), could decline much further. The beauty of this possible short set up is that we will have a well defined stop loss level known prior to entering the trade - which is a key factor to successful trading. The level which would void this trade and where you should exit for a small loss, will be any daily chart time frame close above Thursday's high. The risk/reward ratio could not be more appealing for this trade. I will be watching and waiting for the perfect time to enter this trade, when I do, I will alert our members at the right time to act.