Another Buyable COST Dip
Over the past year, every single dip on Costco Wholesale (COST) has been buyable.
I’ll prove it to you. Let’s walk through all four dips we’ve seen in 2023…
- In January, a dip to $450 triggered a pop over $510.
- Then, in March, a dip to $470 triggered another pop to around $510.
- In June, a dip to $480 sparked a rally up to $560.
- Finally, in September, a dip to $530 triggered a bounce up to $570.
You can clearly see every dip – followed by the subsequent bounce – in the chart below.
And this brings us to the current COST chart.
As you can see, just recently, the stock dipped again, falling from $570 down to $550 due to the September/October market weakness.
This latest drop begs the question…
“Is this current dip buyable?”
From a tactical trading position, I have no reason to say no – and every reason to say yes.
In fact, that’s precisely what I’m telling War Room members right now.
YOUR ACTION PLAN
At $550 per share, Costco Wholesale (Nasdaq: COST) is an expensive stock… which is why I’ve implemented a special strategy inside The War Room. This tactic will get you positioned for a COST bounce, but it will also lower your total cost basis on the trade. So you can see the exact trade that I’m recommending right now, I invite you to join our trading community and enter The War Room. Go HERE to gain access.
MONDAY MARKET MINUTE
- Big Earnings Week. It’s Big Tech earnings week, and Bryan is eyeing some potential candidates for overnight earnings plays in The War Room. With this trading tactic, you win no matter which way a stock moves… as long as it moves BIG. To see how we will play the top earnings candidates this week, go here.
- Coinbase a Safe Haven? Last week, as the major market averages were pinballing around, Bryan noted the strength of Bitcoin in The War Room. It’s up over 50% in 2023, and the strength is coming from the hope that a Bitcoin exchange-traded fund (ETF) will soon be approved, which could immediately offer a boost to COIN. If the market indecision continues, we may move back into COIN. (Keep in mind, we’re neither pro-Bitcoin nor anti-Bitcoin, but we’re always pro-making money… and COIN gives us a chance to do just that!)
- Amazon Gets an Upgrade. As AMZN approaches its Q3 earnings release (which will take place after the close on Thursday), the stock has dropped 5.8% since its previous earnings release, which trails the Nasdaq’s drop of 2.7% over the same time frame. This triggered analyst Wedbush to upgrade the stock last week and issue a $180 price target. With shares closing last week at $131, that’s quite a forecast! This situation could be ripe for a big move this week, which lends itself well to our overnight strategy.