I think COST (Costco Wholesale, $96, up $0.31) might be putting in an important low. At least I have some parameters that can define your risk in this stock!!
Note the price support on this chart ($90.28 – $93.21), but more important….notice the TIME of the prior corrective declines in this stock. They are very similar in TIME: We had a 24, 24, 25 and now the most recent low was made 24 days down from the October high.
As long as we hold above this recent low, I’m taking my buy triggers in COST with the risk defined below that low, and the upside potential at the $107 handle.
Since we don’t ALWAYS make our targets, if the trade starts to go in my favor I will ALSO start to use a trailing stop!!