We reviewed the charts of Costco Wholesale (COST) on November 4 and wrote: "Continue to hold your longs in COST. These kinds of gains can make your investing year. $532 is our nearest price target followed by $622 and then $759. Raise stops to $445 from $369."
Prices have pulled back in recent sessions on talk of some decline in monthly sales figures. This "news" comes ahead of their quarterly numbers due on December 9. 
Let's check out the charts to see if we need to shift our strategy.
In this daily bar chart of COST, below, we can see that prices reached and temporarily exceeded our $532 price target. Can you see the increase in trading volume at the time of the high? This could be older longs taking profits. Prices have dipped in recent sessions and may have been dragged lower by the slump in the broad market averages.
COST is still above the rising 50-day moving average line as well as the rising 200-day line. The On-Balance-Volume (OBV) line is now showing a small peak. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal.
In this weekly Japanese candlestick chart of COST, below, we can see two upper shadows around $550 telling us that traders are rejecting those highs. The slope of the 40-week moving average line is still positive (this is a lagging indicator).
The weekly OBV line shows an ever so slight dip. The MACD oscillator is pointed up but has begun to narrow slightly.
In this daily Point and Figure chart of COST, below, we can see a possible upside price objective of $675. A trade at $500 will likely weaken the chart.
In this weekly Point and Figure chart of COST, below, we can see that prices met a $539 price target.
Bottom line strategy: I will assume that traders have booked some profits at our $532 price target. Earnings are approaching and the movements in the broad market averages have probably put some investors on edge. Raise stops to $505 from $445.
(Costco is a holding in the Action Alerts PLUS member club. Want to be alerted before AAP buys or sells COST? Learn more now.)
