COST closes within previous day's range after lackluster session
Costco Wholesale Corporation (COST) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, COST ended Monday at 340.00 losing $0.91 (-0.27%), but still slightly outperforming the Nasdaq 100 (-0.49%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (COST as at Aug 10, 2020):
Monday's trading range has been $2.46 (0.72%), that's far below the last trading month's daily average range of $4.70. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for COST.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 345.12 where further buy stops could get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Costco Wholesale. Out of 799 times, COST closed higher 52.82% 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 60.45% with an average market move of 0.81%.