Two Retail Stocks Not Yet Hurt By High Gasoline – COST, RTH

High gasoline prices will usually hurt most leading retail stocks eventually. Gasoline prices just reached a new three year high on March 23, 2012. High gasoline prices are considered a direct tax on the U.S. consumer. Most investors know that consumer spending accounts for roughly 70.0 percent of the gross domestic product in the United States. The important retail sector has remained very strong. Since December 2011, the important Market Vectors Retail Holders Trust (NYSE:RTH) has traded higher with the price of gasoline. In this week’s report, we shall examine two leading retail stocks which continue to remain exceptionally strong at this time.

Costco Wholesale Corp (NASDAQ:COST) is one of the leading membership based warehouses that offer branded and private label merchandise in the United States along with various countries around the world. COST stock closed at $90.27 a share last week. The current price is just below its 52 week high of $91.60. The stock is in a confirmed uptrend, trading above the important 50 and 200 moving averages. Traders should watch for important daily chart resistance around the $94.00, and $99.00 area. Should the stock pullback from current levels there should be daily chart support around the $88.30, $86.30, and $85.00 levels. Place these levels on your charts and trade them accordingly.

About Nicholas Santiago 575 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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