Today, after market, Costco Wholesale (COST) is expected to release fourth quarter EPS of $2.85 compared to $2.69 last year on revenue of approximately $52.5 billion vs. $47.5 billion a year earlier. The company operates a chain of warehouse stores and its expected move based on front-month options is 4.0%. The last time the company reported earnings the stock fell 0.4%.
Technically speaking, on a daily chart, Costco's stock price has been in a short-term uptrend since July after a choppy consolidation period. The RSI is currently holding around the 50 level. Price is just barely holding above the 50-day simple moving average (SMA) and range bound in between 331.00 and 349.00. Since price is currently in an uptrend we have a biased for price to advance. Therefore, price will likely breakout to the upside of 349.00 and attempt to retest the all-time high of about 363.50. If price can get above its record high, that would be a very bullish signal that could send price up to its first Fibonacci target at 389.00. However, if price breaks out to the downside of 331.00, then traders should look to 321.50 for a possible bounce. If price breaks below its 321.50 support level it would be a bearish signal, as price could slip further and potentially begin a new short-term downtrend.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.