And now let’s move to today’s stock of the day, which is Costco. Costco has been in a very strong position recently, with the past several days showing particularly solid price action. In fact, the entire year so far has been exceptionally positive for the stock, with buyers maintaining firm control.
From a technical perspective, the key development took place back in December, when price briefly broke below a green horizontal support level. This move turned out to be a false breakout, and as is often the case, false breakdowns tend to lead to a move in the opposite direction. In January, price quickly recovered back above this green support, generating a clear buy signal.
That bullish signal was further reinforced by the breakout above the black descending trendline, which had been connecting a sequence of lower lows. This trendline break confirmed a shift in market structure from corrective to bullish. The combination of a false breakdown at support and a breakout of the downtrend line created a strong technical confluence in favor of higher prices.
After such an extended and dynamic move to the upside, some form of bearish correction or consolidation would be a natural and healthy development. However, despite the possibility of short-term pullbacks, the medium- and long-term technical sentiment on Costco remains clearly positive. As long as price holds above the key support zones, the broader bullish structure stays intact.