Swing Trade Idea (COST) – November 04, 2022
Our bearish trade for Friday, November 4th is Costco Wholesale Corporation (COST). COST is part of the Consumer Staples, which has performed at -0.82% over the last week, with COST underperforming relative to its sector at –2.06% over the same period.
COST formed a lower high at a ley level of $510, from where it is trading lower. Strength is decreasing and the next support is at $450, providing a good risk/reward bearish entry.
As a close, if COST were to trade above $510 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $24.
