Costco Wholesale Corporation (NASDAQ: COST) has storage warehouses in different parts of the world and is a membership-oriented retailer. COST offers many different varieties of products, from food and electronics to jewelry and tires as well. It also has its own online services business module and offers services such as delivery, travel, and grocery.
The COST has various departments, such as gasoline, pharmacy, optical, food court, hearing-aid center, and tire installation center. These departments provide extra services to the members. COST also owns and runs its own e-commerce website for online shopping purposes, which is designed for customers’ ease.
The COST was founded and established in 1976 and has its main headquarters in Issaquah, Washington. Moreover, it renamed itself from Costco Companies, Inc. to Costco Wholesale Corporation in 1999.
What To Expect from COST Price Action?
Costco Wholesale Corporation (NASDAQ: COST) stock price has been rising since October 2017, when COST rallied from the $150 support level by making higher highs and lows and reached a high of $612 on April 2022.
This gave solid returns to the investors and gave 4x return on capital. But, at this high, it faced resistance and as a result, investors started profit booking which they were waiting eagerly to do in the stock.
The same profit booking led the stock downwards up to $400. Since the stock was trusted and believed by the buyers, it stopped making lows. further, it ended in a consolidation range which eventually got narrowed, as the fight between bulls and bears was intense. However, the bulls won the fight and the price action formed a symmetrical triangle and gave a breakout upwards.
Currently, the CMP of the stock is $552.93 and the price is showing upward advancements on the chart, by following a rising parallel channel.
On analyzing the overall fundamentals and financials of the stock, It was found that the stock had wonderful revenue, net income, and profit margin advances, annually.
Also, on the quarterly analysis, the stock had considerably good revenue, net income, and profit margin growth. its growth standards showed it is a stable and versatile stock and a deep potential lies for more future growth in its price and value worldwide.
In addition, the stock ratings for COST stock are positive and highly recommended based on 38 analysts who have evaluated the stock in the last three months. The 1-year price forecasts for COST stock by 31 analysts range between $502 to $680.
Therefore, if buyers boost more, the COST stock might surge strongly from the current level and surge above. The possible targets are between $560 and $570.
On the contrary, if COST stock fails to hold its grip and continuously declines and breaches below $540, it may hit $530.
What To Expect from COST Price Action?
Currently, COST stock is trading below the 20 and 50-day exponential moving averages. The RSI is at 42.22 and the MACD is at 2.21. Showing bearish signs due to sudden downward spikes that occurred in the last few sessions.
But this does not mean that the stock has turned negative, in fact, it shows that the chart is in the parallel channel and rising, and only if this channel breaks. A bearish scenario can be estimated, till then there is no bearish scenario at the moment.
Nevertheless, on the daily chart, the breakout is observed and the stock is making higher highs and lows, there lies a major future probability that if more buying volume persists, then the price might conquer more upper levels and moving averages.
Summary
The technical tools for COST stock price such as MACD, RSI, and most importantly the moving averages show bearish signs. This might be fake because in the last couple of days, the stock showed a sudden downward spike, but failed to shatter the parallel channel. Therefore, there is a higher possibility that the upward advantage in the parallel channel continue in future sessions. Apart from this, the price action tells us that it has more capacity to advance upwards and show bullish traits. Also, the analysts believe that the stock is a buy as per their three-month evaluation of the stock.
Technical Levels
Support Levels: $540 and $530
Resistance Levels: $560 and $570
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/10/23/cost-stock-price-showed-a-good-boost-whats-next-up-or-down/