COST closes higher for the 3rd day in a row
Costco Wholesale Corporation (COST) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, COST ended the week 1.49% higher at 318.31 after edging higher $0.11 (0.03%) today on low volume, slightly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 318.31 marks the highest recorded closing price ever. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (COST as at Feb 14, 2020):
Friday's trading range has been $2.86 (0.9%), that's below the last trading month's daily average range of $4.20. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for COST.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 310.71. The last time this happened on January 24th, COST lost -0.34% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Costco Wholesale. Out of 167 times, COST closed higher 53.89% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.08% with an average market move of 0.58%.