Costco the case for Uptrend

A Bullish Chart Pattern, Ascending Triangle Found in Costco Chart

analysis will be on the 1 week timeframe.

First things first. The 2 Ascending triangle patterns found.
A blue one
A black one

Notice the Black triangle, this is a larger or more influential pattern developing since May 2022.
It holds more wait if signs show we a breaking out of this.
Targets would be $680-720 range.

Confirmation of a test of support Above the horizontal upper black trendline is needed.
This would indicate a continuation of COST previous uptrend, as Ascending triangles when confirmed are strong continuation patterns.

The smaller Blue Ascending triangle seems like a intermediate term consolidation area as well.
Notice how prices have consolidated Above the Black horizontal trendline of the bigger triangle, for weeks.

We have closed Last week ABOVE Blue triangle. We must await confirmation of this breakout.

This could mean we are breaking out of both Triangles.

Look also to the 21 EMA (Purple colored moving average).
We have recently bounced off of a support test. This is a great sign.
This can be a future support test area also. But i always look at it as a level of defence. It has moved up to the $550 level.

Overall, $550 level is critical support level now. Below it we go back into the larger ascending triangle, if we do go back below, this would indicate a fakeout.

An important thing to observe is VOLUME.
For this move to follow through, we must see an increase or spike in volume. Which currently doesn't seem like its there. Which could lead to a fakeout. So we must pay attention.
Remember Volume can really make or break a move especially a chart pattern.

Momentum indicators STOCH RSI and MACD are showing signs of bullishness

STOCH RSI has a BULLISH CROSS.

MACD is attempting to cross Bullish. If MACD crosses, this will give signs that uptrend is now more likely.

Taking positions must be done after COnfirmation or a decisive move Up.
Never take positions inside of a chart pattern, always consider entering after confirmation of breakout.