Costco breaks down from long term trend

Costco breaks down from long term trend linkable real-time version (may need stockcharts.com subscription to view)

Now this is a beautiful chart...albeit a little late.  A 3 year ending diagonal breakdown on Costco may spell doom for the company's stock.

It would be perfectly acceptable for the stock price to rally back to the underside of the lower trendline, but as of now and each day it postpones, the odds are looking less and less likely.  The one hailmary Costco may have is that its volume has not been that impressive on the downside, which means there are still a lot of long term holders of the company's stock that bought back in 2008 and 2009.

However, the amount of volume at the current prices leaves a lot of room to the downside if long term holders get scared.  Notice on the left side the volume by price analysis which shows the major support of buyers in the  $55 to $65 range.  Before reaching that level, the $78 dollar area is the next support zone.  After that is the 2008 high and 2010 lows around $68-71.