Stock of the day: Costco

Today’s Stock of the Day is Costco (COST), which delivered a technically rich session on Wednesday and is now setting up for potential bullish continuation.

Yesterday, the price action dipped below a key red horizontal support at $975, but the move was brief. Instead of following through to the downside, the price quickly reversed and reclaimed the level. This move is a textbook false breakout, highlighted with orange, and often acts as a signal in the opposite direction of the initial break.

That’s exactly what happened: the failed breakdown was followed by a strong upswing into the close, giving bulls some renewed momentum.

Looking at pre-market trading today, Costco is set to open about 0.3% higher, which further reinforces the positive sentiment. As long as the price holds above the red support zone, the buy signal remains valid — especially with a growing possibility of breaking the black downtrend line that’s been capping the upside.

If that downtrend is broken, it would add fuel to the current rebound and confirm a shift in short-term momentum.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-costco-5