Costco's tentative bounce inside a Sell signal
Costco rebounds 2.7%, but its Sell signal stays under management
Costco's tentative bounce inside a Sell signal
Our view last week
Sellers have retaken control: this week Costco stock shed 3.7%, with 85% of volume on the sell side and a new, lower double bottom near 914, below last week's 929 area. Money flow has been worsening for a month and the MACD just turned bearish. Last week's picture was a wait-and-see; now the sell signal, under management since its seventh week, finds fresh legs, with the short at +4.2%.
This week's summary
Costco's Sell signal has been under management since its seventh week, with the short at +1.6%. After last week's 3.7% drop, 85% of volume on the sell side and a new, lower low near the 914 area, the stock recovered 2.7% this week, with buyers back in the majority, 56% of volume. The bounce still looks tentative: the weekly RSI edges up to just 44.8, still below neutral, and money flow keeps worsening after a month.
IQS Phase
88
in tension / maturity
Signal Strength
24
decline losing steam
Sizing
MINIMUM
Ranking
#95 / 140
US stocks
Trade P&L %
+1.62%
from signal to today
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