Zooming In: Double Bottom and Room to Run If we zoom in closer, say, to a 78-minute chart, here's what I'm seeing. Costco has pulled back and is now forming what looks like a double bottom. It's a little awkward in structure, almost like a double bottom-head-and-shoulders reversal pattern, but I think the potential here is clear. If Costco can get over that key $945 level, there's a lot of room to run. From $945, we could see a move all the way back to $1,000 before hitting any major resistance. That's a $50 range with very little in the way to slow it down. There's a small resistance level around $960, but beyond that, it's pretty much clear skies until $1,000. Options for the Move Now let's talk about the trade. Personally, I'm looking at Costco options that expire in the third week of April. Specifically, I like the $970 calls. These are slightly out of the money, but they give you some room to capture the upside while still keeping the cost manageable. Costco options can be a little pricey, so if you want a cheaper option, you could look at next week's $970 calls or even the $950s. Another way to play this is with a spread - buying the $950 calls and selling the $1,000 calls. This reduces your cost while still giving you exposure to the upside. If you want to know my ideal entries and stops, click the image below to watch my video. YOUR ACTION PLAN This Costco setup is a great example of what I look for in a trade - clear technical levels, strong trend support, and a defined risk/reward. Keep your focus on $945 as the key breakout level, and watch $910 as the line in the sand for a stop. And if you're looking for even faster, high-probability setups with explosive potential, you've got to check out my Opening Bell Aftershocks strategy. It's designed to catch explosive moves that happen just minutes after the market opens. I've personally caught moves of 100-300% in just a few minutes using this approach. Click here to learn how to start trading Opening Bell Aftershocks today. Stay disciplined, trade smart, and I'll catch you all soon.
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