$COST Bullish Target Hit, Consolidation Likely

SmartReversals
01-17

$Costco(COST)$

After breaking out from oversold conditions last week, the price action signaled a bullish continuation (as noted in the latest Weekly Compass considering additional indicators) with a target of $950.8 (+2.8%).

Since the price held above the $905.8 Central Weekly Level (CWL), the bullish path was clear by Monday morning. Today, a trader might choose to lock in gains at the target or navigate the move by trailing their stop higher.

The daily timeframe now reaching overbought levels relative to the Bollinger bands and the Stochastic oscillator suggests some consolidation.

Not to mention the precision of our target set before the week started!

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