Risk Management

Weekly Technical Outlook: Breakout Opportunities on COST, Polkadot (DOT/USD), and USD/CHF

Workspace with computer laptop on the wood table with the windows which shown trading graph on the blurred photo of cityscape building background, trading technology concept

Welcome to the first full trading week of July!

Still looking for new trade ideas?

Check out breakout setups on COST and Polkadot (DOT/USD) and a support play on USD/CHF!

COST: Daily

COST Daily Chart

COST Daily Chart

Costco Wholesale Corporation (COST) is having trouble trading above the $485 mark, which isn’t surprising since the level lines up with an ascending triangle resistance.


But wait, there’s more! $485 is also right smack at the 38.2% Fibonacci retracement of May’s downswing and is near a key support zone from late 2021 and early 2022.


Will COST see an upside breakout this week?

Keep an eye on the next candlesticks. Consistent trading above $500 would mean that the bulls have overcome the triangle resistance AND the 100 and 200 SMAs on the daily time frame.

A rejection at $485, on the other hand, could lead to COST dipping back to the $450 or $400 previous inflection points.

DOT/USD: Daily

DOT/USD Daily Chart

DOT/USD Daily Chart

Yo, the Polkadot token (DOT) is revisiting a serious area of interest!

DOT/USD is trading inside a descending triangle that has the 6.5000 level as its support.

As you can see, 6.5000 held as resistance in late 2020 and then support in January 2021.

This time around, DOT/USD’s vacation at the 6.5000 zone has led to a bullish divergence on the daily time frame.

A clear break above the triangle resistance could push DOT/USD to 10.5000 or even 16.5000.

If DOT/USD breaks below its support zone, though, then y’all probably need to brace for a trip down to 4.7500 or even 3.7500.

USD/CHF: Daily

USD/CHF Daily Forex Chart

USD/CHF Daily Forex Chart

I spy with my eye USD/CHF revisiting a key support area!


That’s right, USD/CHF is consolidating just under the .9600 psychological handle that’s right smack at the 100 SMA support on the 1-hour time frame.


Dollar bulls who are taking cues from Stochastic‘s oversold signal can start scaling in at current levels. More conservative traders can also wait for a bit of momentum before aiming for parity.

Not convinced that USD/CHF will see gains in the next few days?

You can also short USD/CHF as soon as it breaks below June’s lows. The .9350 inflection point is a good initial target but you can also aim for .9200 if you see a strong selling momentum.

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