Ben_1148x2

COST - heading into seasonal weakness

Long
NASDAQ:COST   Costco Wholesale
COST is a core holding of mine and one that I use technical analysis to continue building. I've reported multiple setups to build a cost position and recently shared the strong seasonal outlook for November.


We have earnings after the close on 12/14, a quad withing on 12/15, and a history of seasonal weakness between December and March. I'll take this opportunity to sell some of the position into strength and look for opportunities for additional accumulation over the next 3 months.


Note on the daily chart that we're just above a range that I targeted on the breakout of a descending wedge. We can also see that price has pivoted in alignment to the fib time zones and that the next one is 12/15 (day after earnings and on quad witching).


On the weekly chart we are at the top of a measured range, which has typically signaled the start of a secondary downtrend.





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