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After a run in Costco Wholesale (NASDAQ:COST) from $154 to $188, an analyst thought Tuesday was the right time to upgrade the stock. I still don't get it based on COST's huge run.
Anyway, the stock opened higher and then sold off. The reason for the reversal was because the stock slammed into a great resistance trend line (as seen in the chart below), which triggered my short. This is a no-brainer trade in my opinion as the stock was so insanely overbought that it was a huge pullback opportunity. Add in the massive trend line and it's a solid recipe for profit.
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