Costco Wholesale (cost)-Get report The reported fourth-quarter earnings and revenue were better than expected. Nevertheless, the stock fell about 3% in early trading on Friday.
Retail is made up of with and without. Fortunately for investors, Costco belongs to the former group, which consists of other retailers such as Target (TGT)-Get report Walmart (WMT)-Get report.
However, with Friday’s profit declining, people may not feel that way.
Earnings of $3.13 per share easily exceeded the expected 32 cents. Revenue was US$53.38 billion, a year-on-year increase of 1
The strength is also lower than the surface. E-commerce sales surged by more than 90% year-on-year, while comparable store sales increased by 14.1%, excluding fuel and foreign exchange disadvantages. Nevertheless, the costs associated with the coronavirus appear to be suppressing sentiment.
Is this a news report event? Considering that Costco has provided monthly sales updates, it seems so. In other words, a slight weakness may be a buying opportunity.
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Trade Costco stock
Before making a profit, Costco bounced back to the resistance level of $348, which has kept the stock in check for the past month. However, during the trading session on Thursday, the stock was able to rebound strongly from the 50-day moving average and closed above 20 days.
This may allow the bulls to sniff the upward trend in resistance. las, the stock price fell to and reached the 50-day moving average again.
I hope to see this level keep the bulls in control. However, technically speaking, as long as Costco’s stock price stays above $330, it will be fine in the long run.
Below $330, it is below the August breakout point and last week’s low of $331.20. This also means that the 50-day moving average and 10-week moving average failed to serve as support.
However, if it breaks through $330, it may find support near the pre-coronavirus high of $323 and the 100-day moving average.
If Costco’s closing price is below the 50-day moving average, I will remain cautious, but don’t panic. In other words, this will make me take a wait-and-see attitude.
On the bright side, the stock needs to recover the 20-day moving average and clear $350. The aforementioned price rose by 161.8%, followed by a record high of US$363.70. If Costco continues to hit new highs, it seeks to expand the price to twice the range, which is $377.56.