Stock of the day: Costco

Costco is facing significant bearish pressure, as the stock continues to slide lower, making new yearly lows. The technical situation is deteriorating, and there are no clear signs of reversal for now.

The first warning came when the stock broke below the green uptrend line a few days ago, signaling the end of the recent bullish phase. This was followed by another major breakdown, with the price falling below the key horizontal support marked with an orange line at $912. The price is now accelerating downward, aiming for the next critical support level at $870, marked with a yellow line. Given the current momentum, the probability of reaching this level is quite high.

If the $870 support fails to hold, Costco could see further declines toward the blue horizontal support near $790. This level represents a crucial long-term support zone, as it has historically acted as a floor for the price.

For now, the sentiment remains bearish, with no strong buying signals. The only scenario that could reverse this negative outlook would be a decisive move back above the green uptrend line, but given the current market conditions, this seems unlikely in the near term. Costco remains in a clear downtrend, and sellers continue to dominate the price action.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-costco-3