DEPOMED testing resisitance

Depomed NASDAQ:DEPO is testing resistance for the third time since October 1. This specialty pharma company  develops products for pain and other conditions, as well as diseases of the central nervous system. Depomed is making the transition from a developing pharmaceutical to profitable health care company. Revenue growth has been strong and EPS has turned positive in recent quarters. 

Technically the stock has been pushing against resistance at $7.80 during the month of October. It made one attempt to break above this around  October 22 on above average volume. Sometimes these surges foreshadow more consistent advances are to follow. The third test of the $7.80 resistance came yesterday but on much lower volume. If DEPO has a significant increase in volume it is possible that it will break out of this range and move higher. 

COSTCO is making new all time highs

COSTCO is poised to move higher. Since posting better than forecast same store sales  in October Costco has been continuing its bullish move higher. The chart has been exhibiting some classic technical patterns. Costco put in a triple top at the beginning of November. Costco made a new all time high on the third top. It also put in two very bullish parallel tails before breaking through resistance on November 6. A pennant is forming off the bullish candle and is suggesting that Costco will move higher in the near term. The options market is also predicting that Costco will move higher as there is heavy buying of the November call options.