The bearish DailyPlay we chose for Friday August 4th is COSTCO (COST). COST is part of the Consumer Staples Sector (XLP). Over the last month, XLP has experienced a 0.60% move higher and its 1m and 6m trend has turned neutral on 8/1 while recently bouncing lower off its $55.50 resistance level.
COSTCO’s 1m and 6m trends turned bearish yesterday and recently bounced lower off its $162 resistance level. With a technical score of 4 (out of 10), COST is a strong bearish stock that is likely to continue lower.
As a stop loss, if COST was to trade above $162 for multiple days, this would invalidate our analysis and suggest getting out of the trade.
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