Today we’re looking at a retail powerhouse that’s been making headlines for an unusual reason – they can’t keep gold bars in stock.

I’m talking about Costco (NASDAQ: COST), and while the gold story is fascinating, the technical setup is what really caught my attention.

First, let’s look at the big picture.

COST is trading near its 52-week highs, showing remarkable strength while many retailers struggle.

This isn’t just random – there’s a method to this momentum.

The technical picture is particularly compelling right now:

Daily Squeeze Pattern: We’re seeing a compression pattern forming on both the daily and 195-minute charts.

Think of it like a pressure cooker – when the lid finally pops, the move can be explosive. The energy is building, and when it releases, we could see a significant price movement.

I was able to detect this using the S.A.M. AI Scanner.

Stacked EMAs: The Exponential Moving Averages are aligning beautifully on both daily and weekly timeframes.

Imagine a series of support levels, each one reinforcing the next, creating a strong foundation for potential upward movement.

Although I base the majority of my trading decisions based on the technicals…the fundamental backdrop adds weight to this technical setup:

• Gold bars are flying off shelves, with 77% of surveyed locations sold out
• Estimated $200M monthly in gold sales according to Wells Fargo
• Global expansion continues with new locations in South Korea, Japan, Spain, and Mexico
• Strong membership renewal rates and rising profit margins

In addition, the company isn’t set to report earnings until December. Its 52-week high sits at $923.83, and its shares have recovered after a mild sell-off from its late September earnings release, and is now trading near $900 per share.

Your Action Plan:

Yesterday I took a position in COST via call options in my Daily Profits Live Trading Room.

Now, for most people, trading a $900 stock is out of the question. But with the way I like to play “lottos” I was able to buy calls for as low as $177 on the $910 strike expiring this Friday.

I’m betting that we see a pop in COST between now and then.

I know, it’s not a lot of time. But these low-cost option trades have incredible upside when they work.

For example, I’ve been able to hit winners of 100%, 287%, and even 1,129% utilizing this strategy.

One big winner has the ability to makeup for several losing trades.

If you’d like to learn more about how I trade and the Daily Profits Live Trading Room I run, click here to find out more.