Costco Wholesale (COST) has been trading within a range for nearly two years, but recent technical indicators suggest a positive shift. The stock has broken above its 200-day moving average, which now serves as initial support, indicating a bullish trend. The next resistance level to watch is the 2025 high around $1,078.
Unlike many higher-beta stocks, COST does not appear to be nearing exhaustion, as monthly stochastics indicate significant room for growth. Additionally, intermediate-term momentum has improved, with the weekly MACD now in positive territory.
Historically, November has been a strong month for Costco, with the stock gaining over 7% in five of the last six Novembers and not experiencing a decline in November since 2008. This combination of technical strength and historical performance suggests that Costco could see favorable movement in the near term