Numerous stocks that I reviewed last night are at an important trading level, and $COST is no exception. A look a the Daily chart shows a test yesterday of the April 2, 2012 resistance level:
Now what? I suspect that there will be several perspectives put into play here. Here are a few:
- Breakout play
- Cup ‘n Handle formed, so play the handle formation (a U-turn trade playing a slight pullback then bounce to test resistance again)
- Sellers short the resistance test
I am going to play this as a Breakout play myself once I see how the market participants behave today.