COST Daily Chart Analysis: Key Levels, and Price StructureCostco Wholesale Corporation (COST)
Historical Context and Trend Channel:
From September 2024 through early 2025, COST was observed trading within a well-defined upward channel (indicated by the grey shaded areas). This channel represented a consistent bullish trend during that period. However, the price subsequently broke below the lower boundary of this channel around March 2025, suggesting a shift in the established trend.
Key Price Levels Identified:
Strong Support Level (870 to 880): Marked by the light blue shaded zone, this level has historically acted as a robust floor for the price, demonstrating strong buying interest on multiple occasions.
Good Level (930 to 940): The orange shaded area indicates an intermediate support zone. Should the immediate support fail, this level could come into play as the next area of interest for potential buyers.
1st Support (970 to 980): This green shaded area represents the most immediate support level based on recent price action. The price has recently found support within this range.
Key Resistance (1010): The horizontal red line with circled points highlights a critical overhead resistance level. This level has seen prior rejections, making it a significant hurdle for any sustained upward movement. It also appears to act as a potential "neckline" for current price formations.
Target (1060 to 1070): The red shaded zone at the top represents a significant resistance area and a prior peak. If the "Key Resistance -1010" is overcome, this zone could become the next potential target.
Recent Price Action and Pattern Observations:
Following the break from the long-term uptrend channel, COST rallied to form a peak around the "Target 1060 to 1070" zone in May. The subsequent decline from this peak, followed by a bounce and another attempt at the "Key Resistance -1010" level, suggests the formation of a potential "M" top or double top pattern if 1010 holds. More recently, the price has pulled back to test the "1st Support 970 to 980" zone. The current price action around 988.07 indicates that COST is trading between this immediate support and the "Key Resistance -1010" level. The chart illustrates two potential paths (dotted blue lines):
1. A move upward, challenging and potentially breaking above the "Key Resistance -1010" to target the 1060-1070 zone. This would align with a potential bullish "W" pattern formation if the 1st support holds.
2. A decline to retest the "Good Level 930 to 940" before a potential rebound.
The "Key Resistance -1010" level remains pivotal. A sustained break above it could signal further upside, while rejection from this level could lead to a retest of lower support zones.
Disclaimer:
The information provided in this chart is for educational and informational purposes only and should not be considered as investment advice. Trading and investing involve substantial risk and are not suitable for every investor. You should carefully consider your financial situation and consult with a financial advisor before making any investment decisions. The creator of this chart does not guarantee any specific outcome or profit and is not responsible for any losses incurred as a result of using this information. Past performance is not indicative of future results. Use this information at your own risk. This chart has been created for my own improvement in Trading and Investment Analysis. Please do your own analysis before any investments.
