Chart of the Day: Costco's Momentum Starts to Build Again
The stock has been taking a breather, but here's what could trigger the next leg higher.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Inside A Costco Wholesale Corp. Store Ahead Of Earnings Figures
It was nice to see good price action in Costco (COST) to start the new year. Following up on a strong earnings report in November, the company recently posted robust holiday sales and rewarded shareholders with strong guidance. But the stock had already reflected that positive optimism and now sees a range-bound trade develop.
The candles are blue and teal and have been since the start of the year. That is bullish until further notice. Volume trends have been strong but that move up in January was so powerful that now the momentum has stalled out and gives the appearance of bearish indicators. They really are not bearish, but just taking a breather. Remember, we defer to the price chart every time to help us determine the trend and shape of the rally.
Momentum is starting to build again, you can see that in stochastics (pane 5). If we get a break of that top resistance bar in pane 1 the stock may just march its way up to the old highs and then some.
We like Costco in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
Related: Dollar Tree Gained 65% the Last Time This Happened. Will History Repeat?
More Pro Portfolio:
- We're Adding to Two Financial Holdings, While Upgrading One
- We're Tracking 24 Portfolio Signals Across 9 of Our Investing Themes
- Weekly Roundup: Iran and Energy Worries Take Their Toll on the Market
At the time of publication, TheStreet Pro Portfolio was long COST.
