Costco has lower prices, both in-store and…in stock price

Costco Wholesale (COST) stock price looks lower. Prices were reversed on Tuesday in the stock market crash, but stocks are weaker on Wednesday. Let’s check the charts.

In this daily bar chart of COST, below, we can see that prices have made a new low for the decline from an August high. Prices are below the 50-day moving average and below the 200-day moving average. The daily On-Balance-Volume (OBV) line has been weak since mid-August as traders have been more aggressive sellers. The MACD (Moving Average Convergence Divergence) oscillator has just crossed below the zero line for a new outright sell signal.

In this weekly Japanese candlestick chart of COST, below, it looks like COST has formed the right shoulder of a large upper formation. Prices fell below the 40-week moving average. The weekly OBV line shows a peak in April. The weekly MACD oscillator is tightening and may soon move to a new sell signal.

In this daily Point and Figure chart of COST, below, we can see a potential price target on the downside at the $466 area.

In this weekly Point and Figure chart of COST, below, we can see a price target of $456.

Background strategy: With full transparency I love shopping at Costco but my family’s purchases don’t move the needle. Avoid the long side of COST as further declines are possible.

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Karen J. Nelson