COST breaks above 20-day moving average for the first time since June 10th
Costco Wholesale Corporation (COST) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, COST finished the month -1.71% lower at 303.21 after gaining $1.62 (0.54%) today, strongly underperforming the Nasdaq 100 (1.96%). Closing above Monday's high at 301.63, the market confirmed its breakout through the previous session high after trading up to $2.82 above it intraday.
Daily Candlestick Chart (COST as at Jun 30, 2020):
Tuesday's trading range has been $4.31 (1.43%), that's slightly below the last trading month's daily average range of $4.69. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for COST.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The share managed to close above the 20-day moving average at 302.42 for the first time since June 10th. After spiking up to 304.45 during the day, Costco Wholesale found resistance at the 100-day moving average at 303.95. The last time this happened on June 23rd, COST lost -1.09% on the following trading day.
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Costco Wholesale. Out of 227 times, COST closed higher 55.07% 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 62.11% with an average market move of 0.53%.