$COST trade is coming upNASDAQ:COST is breaking below the rising wedge 502 which is opening a nice short trade with a good risk to reward or buying put options. Target is 470-480 zone
COST trade ideas
Symmetrical TriangleThis could also be called a large Descending Triangle.
Top line is a descending or a diagonal resistance line indicating lower highs with each swing up. This line must be broken to reach higher targets. T1 is in larger green type than T2.
Both patterns are neutral until broken.
Price is trying to bust through the .236 today of the trend up.
No recommendation.
04/20/23 Visual View of COSTCOBull Case:
- Has always commanded a premium
- Strong revenue growth
- Solid Return on Equity
- Dividend Safety
Bear Case:
- Way over valued with P/E = 36
- Will be tough to maintain dominance if we fall further into recession
Costco Faces a Potential Make-or-Break MomentCostco has been a steady performer for years, but now the warehouse retailer may be showing signs of exhaustion.
The first pattern on today’s chart is the falling trendline that began last April and the rising trendline from last May. The convergence of the two has produced a triangle, with prices currently nearing the end of the formation. Does this show buyers steadily losing interest?
Second, the 50-day simple moving average (SMA) slipped below the 200-day SMA in October and has remained there since. It’s different from the rest of the market, suggesting that the longer-term trend may have weakened.
Third, notice how prices tried to move above the 200-day SMA and failed after COST reported lower same-store sales on April 6. The shares have also struggled at the 50-day SMA.
Finally, relative strength versus the S&P 500 has been mostly negative since the broader market started climbing in October. This may indicate COST -- with its relatively high valuation -- is losing favor as investors shift to new stocks.
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stdev retracements for U.S equitiesIm currently looking at NASDAQ:TEAM , NYSE:MCD , NASDAQ:PAYX and NASDAQ:TSLA for mean reversion opportunities. Awaiting monthly adj,close data for the month of April.
COST | Bearish ABCD PatternWe have observed Bearish ABCD Pattern. We will take entry of sell stop if the trend reverses from point D which is also a Potential reversal Zone (PRZ) after the confirmation of bearish divergence on RSI and new trend formation with LHs and LLs.
Buying Costco at a discount. COSTTriangle/Three drives within an upgoing zigzag. We more often now base stop loss off a moving ATR, as testing had shown this to be a more effective strategy than mere price levels alone. Yet, ATR is not always an option.
We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in green with invalidation in red. Confirmation level, where relevant, is a pink dotted, finite line. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe.
cost SHORTCOST SHORT
it will rise up till the trendline - then it is going to go down as per the levels shown .
COST| Bullish Trend Continuation | Bullish RectangleACHUSDT is showing Bullish Trend Continuation forming Bullish Rectangle along with the price synced with the RSI . We will place buy stop order along with SL and TPs .
Bullish pattern ?COST shows a bullish pattern
A double bottom structure is also seen on the 1-hour chart, and the 250 SMA position is a test for the index (around 495), where day traders can take profit and wait for opportunities.
Swing traders can stop the profit taking part and add to their positions depending on the strength of the pullback. The target position could be around the previous high of 528. Stop loss will be around the previous low of 466.
COST: Doubling Down on PutsFound more opportunity to buy puts on COST today as the price started edging closer to the 20 SMA. Still expecting a flush in equities in the coming weeks, so looking at 450 as my price target and an eventual breakthrough to the downside of the descending triangle.
COST 1WWhy do I expect price to move below 408 USD?
Firstly, let's look at the chart.
What can you can read from the chart?
Price has been creating lowers highs (LH) and higher lows (HL) for several months
Price is below local PoC.
Weak lower high
What do I expect will happen based on my readings?
Price is currently below local PoC. It has created weak higher low (weak structure). I believe that price will break the weak lower high and move below 408 USD.
COST: Descending TriangleCOST has formed a descending triangle and first target is 450. Once that breaks down, long term targets is 405.
$COST with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for $COST after a Negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 70%.
$COSTCostco's persistent trading range presents a favorable risk-reward trade opportunity for option traders and equity investors.
COST- another candle to confirm a reversal patter, On 3 March 2023, COST appears a reversal patter which we need to confirm it on Monday. Anyway, there is a very attractive reward and loss ratio. Stop loss should be $465.
$COST Opportunity after earningsSince the ATH last April NASDAQ:COST has been beaten up after earnings. It has dropped 5-10% from the close prior to earnings to hit a post earnings low within 3-4 weeks before recovering to resistance at the descending trendline. The green upward trendline aligns to the bottom of the overall trend for the past few years. Consolidation patterns like these typically end with a larger move up/down. The longer-term outcome will likely be dependent on how the market feels about the consumer staples and discretionary sectors. In the short-term, this chart highlights an opportunity to build/accumulate toward a position within the near term trend, assuming that this behavior continues until there is an overall change in sentiment. Adding ~$462, targeting $488-500 for resistance, and a stop at $442, and reaccumulation $390-400.
EW analysis - Can Costco double?As long as Costco doesn't fall below 447.9 it looks like it is in a big wave 4 of Supercycle degree. A Supercycle that started in October 1987.
This wave 4 is developing as a triangle.
Wave e of that triangle should reach approxemately 465 - 468 Dollar.
From there a reverse fibonacci would indicate a target for wave 5 at about 1100 USD.
This is all in log scale.
Costco price trading in a technical formation
Shares in Costco Wholesale Corporation (symbol ‘COST’) have gone through a very turbulent year with the share price ranging from high $610 to low $405. The company’s earnings report for the fiscal quarter ending February 2023 is set to be released on Thursday 2nd of March, after market close. The consensus EPS for Q1 is $3,21 compared to Q1 2022’s $2,92.
‘Costco generated just 2% of its revenue from membership fees, however, those $4.2 billion in membership fees accounted for most of its $7.8 billion in operating profits. This clever “formula” of generating revenue with a very high profit margin has helped the company get through a hard year.’ said Antreas Themistokleous, an analyst at Exness.
On the technical side the price has been trading in a descending triangle formation for the last 6 months. Currently the price is facing resistance at a point on the chart where is the crossing of the 20 day simple moving average line with the 50% of the daily Fibonacci retracement level. Given that there will be no big surprise percentage on the EPS at the date of the release the price most probably will continue to trade within the boundaries of the triangle formation in the short term.
In the case of upward movement ( supported also by the oversold levels on the Stochastic oscillator) we might see some resistance around the $520 price area which consists of the upper band of the Bollinger bands and the 61.8% of the Fibonacci, whereas in the case of a downward continuation the first point of support would probably be found around the $490 area which is made up of the 50 & 100 moving averages, the lower band of Bollinger bands and is also just below the 38.2% of the Fibonacci.
COST - Can we use it as an indicator? Costco..... As a retailor it's hard to argue. They have a good thing going!
If we can use this as an indicator..... the health of the consumer economy going forward looks grim.
The longer term pattern displayed on the chart is clearly a topping pattern. How it plays out is of course, what we're interested in .
This is how I see it.
