Technical Analysis Predictions for Costco Wholesale Corporation - COST
Chapter VIII: Volume Stratification Analysis tracks the volumes associated with price levels over the entire history of a stock. The resulting analysis yields a framework for understanding the mechanism behind support and resistance levels, and a scientific basis for predicting price behaviors due to those levels.
Part I: The Volumetric Profile for Costco Wholesale Corporation.
The Volumetric Profile is the central concept behind Volume Stratification Analysis. This is nothing more than the cummulative volume according to price range. The red bar marks the price range corresponding to the current price of COST shares. |
Part II: Primary Volumetric Support and Resistance for COST common stock.
Blue bars depict the Volumetric Profile for various price levels of Costco Wholesale Corporation. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. General Volumetric Health is 1 on a scale from 1 (best) to 3 (worst), because the price is above the Volumetric line, indicating some positive market sentiment. |
A few layers of volumetric turbulence exist that could provide support on the downside. The most significant of these is found around $8.
|Support Level ID||Price Range||Peak Magnitude|
|1||$58.00 - $58.99||1.54|
|2||$33.00 - $33.99||3.02|
|3||$8.00 - $8.99||5.17|
Looking above today's price, there no significant resistance level to act as a ceiling on upward movement. |
Part III: Secondary Analytical Support and Resistance for Costco Wholesale Corporation Stock Prices
Secondary Support Levels for COST
Horizontal maroon lines indicate Negative Volumetric Peaks. Price intervals with these characteristics are often associated with gaps, although they sometimes operate as support levels. Quarterly and yearly turn-arounds are circled. Only one volumetric minima (valley) is to be found near the $22 level. |
Secondary Resistance Levels for COST
Here, the horizontal lines mark the points of Maximum Negative Slope in the Volumetric Profile. These strata are known to act as resistance levels against upward movement, and are sometimes associated with yearly and quarterly tops. Also, as is typical of resistance levels, they may do double duty as support, but that is not the typical case.|
Companies in the News:
|Friday, February 18, 2011: We have news on Fiserv, Inc., ticker symbol FISV. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Zimmer Holdings, Inc. and McCormick & Company, Incorporated. |
From the News Archive: (2/18/2011 ) Bad news came from Reynolds American, Inc., Dollar Tree, Inc., Zimmer Holdings, Inc., and NVIDIA Corp.
More COST Technical Analysis Topics
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