Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Silver Short-Term Trend Analysis - 26th June 19
Iran and the Dying Days Of the US Empire - 26th June 19
Why a Saturated Online Gaming Market Spells Good News for Gamblers - 26th June 19
Natural Gas Sets Up Bottom Pattern - 26th June 19
Has Gold Price Broken Out Or Not? Technicals And Fundamentals - 26th June 19
Stocks and XAU Gold Miners Next Bull and Bear Markets are Now Set Up - 26th June 19
Gold Price Trend Forcast to End September 2019 - Video - 25th June 19
Today’s Pets.com and NINJA Loan Economy - 25th June 19
Testing the Fed’s Narrative with the Fed’s Data: QT Edition - 25th June 19
What "Pro Traders" use to Find Profitable Trades - eBook - 25th June 19
GDX Gold Stocks ETF - 25th June 19
What Does Facebook’s LIBRA New Crytocurrency Really Offer? - 25th June 19
Why Bond Investors MUST Be Paying Attention to Puerto Rico - 25th June 19
The Next Great Depression in the Making - 25th June 19
The Bad News About Record-Low Unemployment - 24th June 19
Stock Market New High, but…! - 24th June 19
Formula for when the Great Stock Market Rally Ends - 24th June 19
How To Time Market Tops and Bottoms - 24th June 19
5 basic tips to help mitigate the vulnerability inherent in email communications - 24th June 19
Will Google AI Kill Us? Man vs Machine Intelligence - 24th June 19
Why are Central Banks Buying Gold and Dumping Dollars? - 23rd June 19
Financial Sector Paints A Clear Picture For Stock Market Trading Profits - 23rd June 19
What You Should Look While Choosing Online Casino - 23rd June 19
INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - 22nd June 19
Here’s Why You Should Drive a Piece of Crap Car - 22nd June 19
How Do Stock Prices React to Fed Interest Rate Cuts? - 22nd June 19
Gold Bull Market Breaking Out! - 21st June 19
Post-FOMC Commentary: Delusions of Grandeur - 21st June 19
Gold Scores Gains as Draghi and Powel Grow Concerned - 21st June 19
Potential Upside Targets for Gold Stocks - 21st June 19
Gold Price Trend Forcast to End September 2019 - 21st June 19
The Gold (and Silver) Volcano Is Ready to Erupt - 21st June 19
Fed Leaves Rates Unchanged – Gold & Stocks Rally/Dollar Falls - 21st June 19
Silver Medium-Term Trend Analysis - 20th June 19
Gold Mining Stocks Waiting on This Chart - 20th June 19
A Key Gold Bull Market Signal - 20th June 19
Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - 20th June 19
Investing in APPLE (AAPL) to Profit From AI Machine Learning Stocks - 20th June 19
Small Cap Stocks May Lead A Market Rally - 20th June 19 -
Interest Rates Square Minus Zero - 20th June 19
Advice for Financing a Luxury Vehicle - 20th June 19
Stock Market Final Blow Off Top Just Hit… Next Week Comes the FIREWORKS - 20th June 19
US Dollar Rallies Off Support But Is This A Top Or Bottom? - 19th June 19
Most Income Investors Are Picking Up Nickels in Front of a Steamroller - 19th June 19
Is the Stock Market’s Volatility About to Spike? - 19th June 19
Facebook's Libra Crypto currency vs Bitcoin: Five Key Differences - 19th June 19
Fed May Trigger Wild Swing In Stock Index and Precious Metals - 19th June 19
How Long Do Land Rover Discovery Sport Brake Pads Last? - 19th June 19
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Costco Corp. (COST): Finding Opportunity in Five Minutes or Less

Companies / Company Chart Analysis May 24, 2019 - 05:38 PM GMT

By: EWI

Companies

Our FREE video shows how wave clarity is the first step to identifying a high-probability trade set-up.

Our chart of Costco Wholesale Corporation as of March 12. If today was March 12, could you assess within five minutes where this popular stock was headed next?


Maybe you'd go directly to a "news-based" analysis for guidance. There, you'd find conflicting reports about the company's future growth, as captured in these headlines from the time:

  • Costco is Bearish: "Valuation Does Not Reflect the Risks: Costco" (March 11 monreport.com)
  • Costco is Bullish: "Costco Stock is Still Rising After Earnings and It Has Room to Grow" (March 12 Barron's)
  • Costco is back to being Bearish: "Why This Stock is Considered to Be Overbought? Costco Wholesale Corp." (March 11 Wall Street Morning)

After skimming those articles, you'd come away with zero new clarity about Costco's price trend.

Next, you try your hand at technical analysis, even Elliott wave analysis. You broaden your scope to include every relevant time frame, from weekly to hourly to even 1-minute charts -- all to determine where current price action fits in the larger structure.

And then... BEEP! Five minutes have passed but you haven't even begun to label the chart.

So, what's the lesson? That it's impossible to fully assess a market within five minutes?

No, just the opposite. As our Trader's Classroom editor Jeffrey Kennedy explains: The strongest market forecasts are got by with ease, alacrity, and clarity. In his March 12 Trader's Classroom video lesson "Tips on Counting Waves," Jeffrey offers this approach to analyzing price charts:

"Lean back, take a breath and relax. Look at the movement of prices. If the wave pattern isn't clear, don't trade it.

In his video lesson, Jeffrey puts his method to the test on the same price chart we just showed of Costco Wholesale Corporation. He pauses the video on the chart and identifies the most probable wave count, pictured below: a double zigzag A-B-C-X-A-B-C, followed by an impulsive set of one's and two's. The next move on hand was a powerful third wave rally. In Jeffrey's own words:

"If this wave count is correct, we will continue to see prices moving higher, ultimately beyond the high of 243.92. I think this is a very solid interpretation and I hope you label the price chart as such."

In all, Jeffrey's analysis, labeling and forecast took four minutes! And, as the next chart shows, Costco followed Jeffrey's outlook to a T, with shares soaring "beyond the high of 243.92" to a fresh record on April 1.

In his 25 years of studying and teaching Elliott wave analysis, Jeffrey observes that 60-80% of market price action unfolds in five core Elliott wave patterns. These patterns are clear, and don't require an in-depth understanding of wave machinations -- all which eat traders' precious time.

Jeffrey's March 12 Trader's Classroom video "Tips on Counting Waves" shows you exactly how to identify these core patterns on the price charts of real, household name stocks -- including today's Costco example. The other markets are: WPX Energy, Inc (WPX), Dow DuPont, Inc (DWDP), Citrix Systems, Inc (CTXS), and Bank of America Corp. (BAC).

Right now, Club EWI members can have instant, no-cost access to Jeffrey's "Tips on Counting Waves" video lesson via a new Club resource titled "Discover 5 Reliable Setups in Just 26 Minutes." Get your free lesson now..

This article was syndicated by Elliott Wave International and was originally published under the headline Costco Corp. (COST): Finding Opportunity in Five Minutes or Less. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Who is Elliott Wave International?
EWI is the world's largest independent technical analysis firm. Founded by Robert Prechter in 1979, EWI helps investors and traders to catch market opportunities and avoid potential pitfalls before others even see them coming. Their unique perspective and high-quality analysis have been their calling card for nearly 40 years, featured in financial news outlets such as Fox Business, CNBC, Reuters, MarketWatch and Bloomberg.

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules