September 27 Chart of the Day - Costco
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Shares of Costco (COST) were sliding Friday after the retailer posted a mixed fourth-quarter earnings report. Revenue came in at $79.70 billion, falling slightly below the expected $79.96 billion. Meanwhile, US comparable sales, ex-gasoline and currency impacts, were better than analysts were expecting.
Price was down over $15 (1.75%) to $885 but when we last featured their chart from a price action technical analysis perspective last December it was in the $680 area.
Don't you wish you followed us then?
We have featured over 300 Charts of the Day since May 2023 and teach Price Action Technical Analysis Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that price has reached un-chartered territory after breaking out above $600 late last year.
Now, with no previous price history at these levels price is going through what we like to call a "discovery phase" to create new structure. As traders we're limited to estimating potential upside targets using only price action tools Trend and Fibonacci as shared for free in our Trading All Time Highs webinar replay.
Weekly Chart
On the weekly chart we can see where price broke above a multi year trend line before dropping back below it and bursting back up through it.
Price is currently retesting the top of it again however, when price starts to slash through a trend line like this that can indicate that the strength and potential for that line to hold diminishes.
Trading around $885 price may have its sights set on yet another pull back long opportunity in the $850 area. Should this level not hold then $800 could quickly come into play.
On the flip side, technically speaking $1000 or even higher is in play from a Fibonacci extension standpoint.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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