COST broke out of a long term resistance. Can it hold?
It's been a few days since COST broke out of the long term resistance of $389.58 that was forming since November 2020.
The question now is, can it hold?
Two reasons why I think it can.
1. It consolidated after a move higher and made a new 52 week high
2. Its expected to do well in the coming year.
Now, looking at its past performance I think COST will come back to retest the $387.60 to $389.58 range before moving higher.
The main reason why I think this is because the breakout didn't have a large amount of volume kicking it higher; and because the follow through also doesn't have a lot of volume.
Final thought:
COST did break and I think it'll continue to move higher but not before retesting the broken resistance.
This is one to keep an eye on for sure.
The question now is, can it hold?
Two reasons why I think it can.
1. It consolidated after a move higher and made a new 52 week high
2. Its expected to do well in the coming year.
Now, looking at its past performance I think COST will come back to retest the $387.60 to $389.58 range before moving higher.
The main reason why I think this is because the breakout didn't have a large amount of volume kicking it higher; and because the follow through also doesn't have a lot of volume.
Final thought:
COST did break and I think it'll continue to move higher but not before retesting the broken resistance.
This is one to keep an eye on for sure.