First, look at some of the other interesting events that are occurring here. At the same time the record price high was hit, a green trending bar appeared on the top of the price graph to signal the start of a new leg of Costco's ongoing bull trend. There is also a very impressive stack of blue bars on the volume graph. A blue bar on the volume graph means that the stock went up that day. Had it gone down, a red bar would have been drawn. The volume we are seeing here is similar to the hardcore buying that occurred in late February. Market conditions were a bit more favorable back then, and this fact is the one caveat that must be kept in mind.

Accumulation seems to be in order. Pay heed to the fact that the current price is quite elevated over the 13-day EMA. Stocks have a tendency to trace back and touch the 13-day EMA after a strong run up. So you will want to back in slowly. If, in fact, Costco opens lower next Monday (Lord knows what the market's gonna do next week), 55 dollars is the ideal price level to start picking up shares. If there is a serious rollover in the markets on Monday, then it's fodder for the Watch List.


Next: MACD: Not Just a Burger

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