Costco Wholesale is an international chain of hypermarkets with a Price Club format whose objective is to provide the best prices on quality products.
At Costco you can find a large selection of exclusive products, including hospitality products, confectionery, household appliances, television, car parts, tires, toys, electronic devices, sports items, jewelry, watches, cameras, audiovisual, books, household products, health, beauty, furniture, equipment and office products... all with the best quality.
It has large stores in the United States, Puerto Rico, Canada, Mexico, Taiwan, Korea, Japan, the United Kingdom, Australia, Spain, France, Iceland and China.
--> What is the technical aspect?
If we look at the chart, the technical aspect is impeccable bullish in a retracement phase, but the retracement phase may be coming to an END!!.
After making a strong retracement overcoming the 61.8% Fibonacci zone, on January 7 the price gave us the first bullish warning (Bull). The next one to warn us of bullish strength (Bull) was the oscillator on January 13, and finally, yesterday, the FORCE aligned with the TREND and the MOMENTUM (see table), leaving everything bullish (Bull) ready to attack highs.
--> What do we need to attack highs?
That it overcomes its last important resistance which is the 963 area.
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Strategy to follow:
ENTRY: We will open 2 long positions if the H4 candle closes above 963
POSITION 1 (TP1): We close the first position in the 999 area (+4%)
--> Stop Loss at 899 (-6.2%).
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (-6.2%) (coinciding with the 899 of position 1).
---We modify the dynamic Stop Loss to (-1%) when the price reaches TP1 (999).
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SET UP EXPLANATIONS
*** How do we know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: If the dynamic Stop Loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the Stop Loss also rises to maintain that -1% in the rises, therefore, the risk is increasingly lower until the position becomes profitable. In this way, very solid and stable price trends can be taken advantage of, maximizing profits.