Is COSTCO WHOLESALE CORP Ready to Break Out of Its Range?
By Mill Chart
Last update: Nov 9, 2023
We've identified COSTCO WHOLESALE CORP (NASDAQ:COST) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:COST for further developments.
Technical analysis of NASDAQ:COST
Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.
We assign a technical rating of 7 out of 10 to COST. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, COST is only an average performer.
- The long and short term trends are both positive. This is looking good!
- COST is part of the Consumer Staples Distribution & Retail industry. There are 45 other stocks in this industry. COST outperforms 86% of them.
- COST is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so COST is leading the market.
- In the last month COST has a been trading in the 540.23 - 577.30 range, which is quite wide. It is currently trading near the high of this range.
- When comparing the yearly performance of all stocks, we notice that COST is one of the better performing stocks in the market, outperforming 82% of all stocks. However, this overall performance is mostly based on the strong move around 4 months ago.
Our latest full technical report of COST contains the most current technical analsysis.
How do we evaluate the setup for NASDAQ:COST?
ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:COST is 8:
COST has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 567.39. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 566.17, a Stop Loss order could be placed below this zone.
How to trade NASDAQ:COST?
A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.
Our Breakout screener lists more breakout setups and is updated daily.
Disclaimer
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.
COSTCO WHOLESALE CORP
NASDAQ:COST (4/29/2024, 9:57:08 AM)
722.07
-7.11 (-0.98%)
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