Owning stocks right now does not sound like a pleasant experience. On the other hand, going short on CFD’s on stocks sounds way better. Luckily, in our offer, you have hundreds of Stocks CFD’s to go short on, and I guess we will be focusing on this direction in the next few days, weeks or even months. In today’s analysis, for the first time – Costco.
As you may expect, we do see a nice bearish setup here. At the end of the year, the price created a triple top formation (green), and at the beginning of the year, we broke its neckline (black). That gave us a mid-term sell signal. The price declined and managed to break another crucial support in the last week – long-term up trendline (red). That breakout sorts out the long-term situation on Costco. At least from the technical point of view. This view is naturally bearish.
As for the potential targets, we don’t see anything eye-catching right now. In a panic mode, supports do not exist. What counts is who gets out of the room first, and the doors are very narrow. If your only strategy is to buy the dip, you have to be aware that it can keep dipping, so be careful with catching the falling knife, especially if it is falling from this height.