Company: Costco Wholesale Corporation
Ticker: COST
Exchange: NASDAQ
Sector: Consumer Defensive
Introduction:
Greetings and thank you for taking the time to read my analysis. Today, we delve into the weekly chart of Costco Wholesale Corporation (COST) which has been forming a symmetrical triangle pattern for the past 12.88 months. This pattern is typically a sign of market indecision, and we're anticipating a breakout soon.
Symmetrical Triangle Pattern:
A symmetrical triangle is a chart pattern in technical analysis used by traders to predict future price movements. It is formed when the price of an asset consolidates between converging trendlines that slope towards each other, creating a triangular shape. The pattern is characterized by lower highs and higher lows, indicating a tightening price range as the market reaches a point of equilibrium between buying and selling pressure. In this case, we have 5 clear touch points on the upper trendline and 3 on the lower trendline.
Analysis:
Costco's price is currently above the 200 EMA, and given the clear uptrend preceding the triangle, we are inclined to see this symmetrical triangle as a bullish continuation pattern. However, the inherent indecision signaled by the symmetrical triangle means we should hold off on calculating a price target until a definite breakout occurs.
Moreover, a breakout must occur soon, as the closer we get to the triangle's apex, the weaker the effect of the breakout. This makes COST a high-priority watchlist candidate that should produce a result soon, regardless of the direction it takes.
Conclusion:
The Costco Wholesale Corporation weekly chart analysis points towards a symmetrical triangle pattern, indicating market indecision and a potential breakout soon. Traders should closely monitor this chart for signs of a breakout.
Remember, this analysis is not financial advice. Always conduct your own research when investing and consider risk management and proper position sizing when trading based on chart patterns.
If you found this analysis helpful, please like, share, and follow for more updates. Happy trading!
Best Regards,
Karim Subhieh
Ticker: COST
Exchange: NASDAQ
Sector: Consumer Defensive
Introduction:
Greetings and thank you for taking the time to read my analysis. Today, we delve into the weekly chart of Costco Wholesale Corporation (COST) which has been forming a symmetrical triangle pattern for the past 12.88 months. This pattern is typically a sign of market indecision, and we're anticipating a breakout soon.
Symmetrical Triangle Pattern:
A symmetrical triangle is a chart pattern in technical analysis used by traders to predict future price movements. It is formed when the price of an asset consolidates between converging trendlines that slope towards each other, creating a triangular shape. The pattern is characterized by lower highs and higher lows, indicating a tightening price range as the market reaches a point of equilibrium between buying and selling pressure. In this case, we have 5 clear touch points on the upper trendline and 3 on the lower trendline.
Analysis:
Costco's price is currently above the 200 EMA, and given the clear uptrend preceding the triangle, we are inclined to see this symmetrical triangle as a bullish continuation pattern. However, the inherent indecision signaled by the symmetrical triangle means we should hold off on calculating a price target until a definite breakout occurs.
Moreover, a breakout must occur soon, as the closer we get to the triangle's apex, the weaker the effect of the breakout. This makes COST a high-priority watchlist candidate that should produce a result soon, regardless of the direction it takes.
Conclusion:
The Costco Wholesale Corporation weekly chart analysis points towards a symmetrical triangle pattern, indicating market indecision and a potential breakout soon. Traders should closely monitor this chart for signs of a breakout.
Remember, this analysis is not financial advice. Always conduct your own research when investing and consider risk management and proper position sizing when trading based on chart patterns.
If you found this analysis helpful, please like, share, and follow for more updates. Happy trading!
Best Regards,
Karim Subhieh
KSC
