0I47 trade ideas
$COST Caution Diamond top on Costco
Yesterdays earnings did not bring a great reaction , the stock has been struggling to find any upward traction for some time.
The chart is now looking very much like a Diamond Reversal Pattern has formed which would signal a major top has made by the stock.
$293 is a crucial level to hold with $317 as upside resistance
Teh companies high valuation may become more of a concern if value investing comes back to the forefront
Explosive Morning IncomingBut which way? From the looks of the chart the market has an equally divided opinion.
Should We Fill Our Oversized Cart 🛒 With COST? | COSTCO ($COST)🔥🛒🔥 Costco's fundamentals have us thinking about buying enough COST to feed a family of 8... but do we really need all this COST now?
While the trend looks good, Costco isn't as cut and dry as some other COVID impacted stocks. Still, we expect revenue and earnings to be up again since last quarter and we expect people getting back to life after COVID to choose Costco. This should ultimately give COST a boost, and that has us looking at some levels for bulls who want to buy COST like a way too big tub of dip.
First, before we look for lower levels, we need to be aware of R1. R1 is currently acting as resistance but should flip and act as support if and when COST can break above it.
Below we have S1 - S3 for support. S1 is the first place to look for support if the broader market pulls COST down, if earnings are underwhelming, or if we generally see consolidation before a move up for any reason. S2 - S3 are levels to watch if S1 can't hold.
Our general theory on COST can be seen in the chart. We are looking for similar price action here that was seen back in 2018 - 2019, that is a move up, consolidation, and another move up to new highs. We expect COST to continue its uptrend ultimately, and that means we are looking for a pullback to S1 or S2.
Lastly, while there is more support below, a move below S3 could make COST a much less attractive prospect for the bulls.
The bottomline here is this, we are bullish on Costco and expect earnings to be impressive, but we want to look for longs after a correction or after we break above current ATH's, not at as we consolidate under resistance.
Resource: www.earningswhispers.com + www.foxbusiness.com
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Good luck traders!
$COSTBig red hammer, price bounced EOD.
Looking what seems like a potential morning star reversal.
Do not trade this. You will lose money.
Watch list for early next weekCould be a nice swing trade if you like range plays....looking for volume.
SELL COSTCO STOCKThe Triangle has been broken down and the price is less than $300 which was a strong support line.
There is also a Double Top which has been broken to down.
RSI is below 50% in Daily Chart. There will be a downward trend.
Costco is a long term holdCostco is consistently increasing their revenues as they are continually expanding and growing popularity. I can’t see this stock loosing revenue any time soon. Their cash flow is high and they are a recession proof stock because they make 75% of their income through memberships and I don’t think people are going to stop shopping there anytime soon. Their expected to grow at 8% every year and have a good amount of assets for their book value. Yes their P/E of 36 is expensive but combined with their dividend and their consistent growth I don’t see how you can loose money on it in the long term.
Costco Next Target: $310 Short, then $325First off, please don't take anything I say seriously or as financial advice. As always, this is on an opinion based basis. Costco has surged recently, and I been wanting to do an analysis for Costco for a while (I wonder why). That being said, the next target for what I would say Monday or Tuesday is $310. The weekly threshold target I am hoping it would pass with mid risk is $325. Right now I am mostly bullish as many analyst are seemingly giving it buy signals.
Costco on steroidAnyone looked at Costco before ? Previous recessions hadn’t affected it a bit
Just observation
Possible feeler in COST against the 50 day MACost is trading within the 324-270 range (refer to weekly) and has put in back to back inside days with volume drying up. I'd be looking to grab a feeler through 311 against the 303.
COST setting up nicelyThe weekly looks to be developing a nice base. The daily is not quite ready yet but the weekly is showing a potential buying opportunity through 325 if everything lines up.
