Costco Wholesale Corporation (COST)
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
In the current situation of Costco Wholesale there is just one buy setup eligible:
Costco Wholesale stock continues to trend higher since in mid-June and marked an amazing 27.76% gain. Price marked a pull back in this uptrend at $331.20 in mid-September, and since then it bounced up a 13.1%. Price just broke out above the entry point at $363.67, but it's still eligible. If price goes above $381.85, it would be better to wait to another pullback. If you decide to enter this trade, the suggested stop loss is at $327.30
| Buy setup | Buy point | Stop loss | Risk |
| Uptrend buy setup | $363.67 | $327.30 | 10% |
"To sell or not to sell", if you are holding Costco Wholesale shares?. Trading strategies let us to avoid rash decisions based on our personal feelings or the noise surrounding the market. When selling, as well as buying, our setups are very easy to follow but are only valid for selling shares you already own, not for selling short Costco Wholesale stock
A golden rule is that you should never hold a trade that shows a higher than expected losses at the time of the buy. The timing to sell your stock must always be ruled by the stop-loss (automatic or manual)
Currently, Costco Wholesale stock doesn't match any of our preferred sell setups, so if you hold Costco Wholesale stock and your operation is in profit probably is not time to sell now
Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal
In the last 30 days, 13 analyst ratings were published for Costco Wholesale. General sentiment is bullish, with 7 out of 13 publishing positive forecasts
| Brokerage firm | Rating |
|---|---|
| Sep 25th, 2020 | |
| BMO Capital Markets | Buy |
| Sep 25th, 2020 | |
| Deutsche Bank | Neutral |
| Sep 25th, 2020 | |
| MKM Partners | Neutral |
| Sep 25th, 2020 | |
| Morgan Stanley | Buy |
| Sep 25th, 2020 | |
| Raymond James | Buy |
| Sep 25th, 2020 | |
| Royal Bank of Canada | Buy |
| Sep 25th, 2020 | |
| Telsey Advisory Group | Buy |
| Oct 6th, 2020 | |
| Barclays | |
| Oct 6th, 2020 | |
| Credit Suisse Group | Neutral |
| Oct 6th, 2020 | |
| CSFB | Neutral |
| Oct 8th, 2020 | |
| Deutsche Bank | Neutral |
| Oct 8th, 2020 | |
| Loop Capital | Strong buy |
| Oct 15th, 2020 | |
| Jefferies Financial Group | Neutral → Strong buy |
Since in mid-June, Costco Wholesale has been drawing an uptrend that so far marked an amazing 27.76%. Rising peaks and troughs can be seen easily on a chart and how price action offered very few entry points on the breakouts. Latest low was in mid-September, when price bounced at $331.20. Costco Wholesale broke out above $363.67 (its last top) on October 8. That breakout was a good entry point
A favorite tool of many traders are the moving averages, that easily show market direction. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Further about Moving Averages from sources like Wikipedia and Investopedia
Traders use support and resistance levels as a way to identify price points in the stock price action that may act as barriers, preventing the price of a stock to move in certain direction. Supports are levels where the price may find support as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it is likely to continue declining until approaching another support level. On the other side, resistances are where the price tends to find opposition as it rises. Again, this means that the price is more liable to "bounce off" at this level, and if it finally breaches this level, the price will rise more easily until it hits the next resistance
Price is at all-time highs and there are not upper resistance levels.
The current support levels are:
This is an indicator that was designed in the 1980s by John Bollinger. It comprises three lines that are superimposed on the price evolution chart:
Since the price surpassed the upper band on October 13, the price has corrected downwards by 2.01%
The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to map the current and past strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves from 0% to 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978
The RSI dropped below the overbought level of 70 on Monday after just crossing to the overbough zone for just one day (weak signal). The RSI value today was 61.97. Costco Wholesale stock fell a 1.82% since RSI lost the overbought zone
FQ4 investors call was hosted by Costco Wholesale ($COST) in late September after releasing the financial report. COST beat market estimates and posted an EPS of $3.04, that is a 7.04% surprise compared to the forecasts of $2.84.
This compares to earnings of $1.89 per share same quarter last year, so posted EPS is a gain of 60.85%.COST ($COST) will host the Q1 earnings call next December. Wall Street expects an earnings a share of $1.96, compared to Q4 that was $3.04.
