COST closes lower for the 3rd day in a row
Costco Wholesale Corporation (COST) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, COST finished the week -1.82% lower at 374.60 after edging lower $1.15 (-0.31%) today on low volume, underperforming the Nasdaq 100 (0.25%). 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 Oct 23, 2020):
Friday's trading range has been $2.96 (0.79%), that's far below the last trading month's daily average range of $5.75. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for COST.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 372.03 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 372.03 where further sell stops might get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Costco Wholesale. Out of 142 times, COST closed higher 54.93% 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 65.49% with an average market move of 0.99%.