Costco Stock Forecast
Explanation to Bollinger's Bands
Bollinger Bands was created by John Bollinger in the early 1980s, its purpose is to define price action relative to the assets highs and lows. This technical indicator is used to identify buy and sell signals and has proven very well in doing so.
Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper and lower bands. The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average. StockInvest.us uses Bollingers suggested 20 day average.
Middle Bollinger Band = 20-period simple moving average
Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
Lower Bollinger Band = Middle Bollinger Band - 2 * 20-period standard deviation
BandWidth defines the current width of the band.
%b defines the current position within the band.
BandWidth = (Upper Bollinger Band - Lower Bollinger Band) / Middle Bollinger Band
%b = (Last - Lower Bollinger Band) / (Upper Bollinger Band - Lower Bollinger Band)
Live Samples:
Bottlenecks in bandwidth indicate an upcoming change. Break up through the moving average line or continuous movements above the moving average line indicate a break up, and vice versa.
Source: http://www.bollingerbands.com
Costco stock price down 0.0941% on Wednesday
(Updated on May 01, 2024)
The Costco stock price fell by -0.0941% on the last day (Wednesday, 1st May 2024) from $722.90 to $722.22. It has now fallen 3 days in a row. During the last trading day the stock fluctuated 2.03% from a day low at $715.32 to a day high of $729.86. The price has fallen in 6 of the last 10 days but is still up by 0.98% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -129 thousand shares and in total, 2 million shares were bought and sold for approximately $1.14 billion.
The stock is moving within a wide and horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect Costco stock with a 90% probability to be traded between $691.75 and $767.98 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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COST Signals & Forecast
A buy signal was issued from a pivot bottom point on Thursday, April 04, 2024, and so far it has risen 2.46%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. The Costco stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. On corrections up, there will be some resistance from the lines at $724.15 and $723.67. A break-up above any of these levels will issue buy signals. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.
Support, Risk & Stop-loss for Costco stock
Costco finds support from accumulated volume at $714.08 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
In general the stock tends to have very controlled movements and with good liquidity the risk is considered very low in this stock. During the last day, the stock moved $14.54 between high and low, or 2.03%. For the last week the stock has had daily average volatility of 1.78%.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (COST) For The Upcoming Trading Day Of Thursday 2nd
For the upcoming trading day on Thursday, 2nd we expect Costco Wholesale Corporation to open at $722.47, and during the day (based on 14 day Average True Range), to move between $710.31 and $734.13, which gives a possible trading interval of +/-$11.91 (+/-1.65%) up or down from last closing price. If Costco Wholesale Corporation takes out the full calculated possible swing range there will be an estimated 3.30% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $725.56 (0.46%) than the support at $714.08 (1.13%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Costco Wholesale Corporation stock A Buy?
Costco holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We, therefore, hold a negative evaluation of this stock.
Current score: -1.635 Sell Candidate Unchanged
Predicted Opening Price for Costco Wholesale Corporation of Thursday, May 2, 2024
| Fair opening price May 2, 2024 | Current price |
|---|---|
| $722.47 ( 0.0342%) | $722.22 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for COST
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 737.01 | 2.05 % | |
| R2 | 731.45 | 1.28 % | ||
| R1 | 728.02 | 0.80 % | ||
| Current price: | 722.22 | |||
| Support | S1 | 716.91 | -0.735 % | |
| S2 | 713.48 | -1.21 % | ||
| S3 | 707.93 | -1.98 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 785.59 | 8.77 % | |
| R2 | 736.88 | 2.03 % | ||
| R1 | 725.56 | 0.462 % | ||
| Current price | 722.22 | |||
| Support | S1 | 714.08 | -1.13% | |
| S2 | 711.30 | -1.51% | ||
| S3 | 705.69 | -2.29% |
COST Dividend Payout History
| # | Ex-Date | Pay Date | Amount | Yield | |
|---|---|---|---|---|---|
| 1 | Apr 25, 2024 | Apr 25, 2024 | May 10, 2024 | $1.16 | 0.161% |
| 2 | Jan 18, 2024 | Feb 01, 2024 | Feb 16, 2024 | $1.02 | 0.141% |
| 3 | Dec 14, 2023 | Dec 27, 2023 | Jan 12, 2024 | $4.08 | 0.597% |
| 4 | Oct 18, 2023 | Nov 02, 2023 | Nov 17, 2023 | $1.02 | 0.177% |
| 5 | Aug 09, 2023 | Aug 24, 2023 | Sep 08, 2023 | $1.02 | 0.185% |
FAQ
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