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COWC34 trade ideas

$COST Opportunity after earningsSince the ATH last April NASDAQ:COST has been beaten up after earnings. It has dropped 5-10% from the close prior to earnings to hit a post earnings low within 3-4 weeks before recovering to resistance at the descending trendline. The green upward trendline aligns to the bottom of the overall trend for the past few years. Consolidation patterns like these typically end with a larger move up/down. The longer-term outcome will likely be dependent on how the market feels about the consumer staples and discretionary sectors. In the short-term, this chart highlights an opportunity to build/accumulate toward a position within the near term trend, assuming that this behavior continues until there is an overall change in sentiment. Adding ~$462, targeting $488-500 for resistance, and a stop at $442, and reaccumulation $390-400.
NASDAQ:COSTLong
by Ben_1148x2
Costco price trading in a technical formation Shares in Costco Wholesale Corporation (symbol ‘COST’) have gone through a very turbulent year with the share price ranging from high $610 to low $405. The company’s earnings report for the fiscal quarter ending February 2023 is set to be released on Thursday 2nd of March, after market close. The consensus EPS for Q1 is $3,21 compared to Q1 2022’s $2,92. ‘Costco generated just 2% of its revenue from membership fees, however, those $4.2 billion in membership fees accounted for most of its $7.8 billion in operating profits. This clever “formula” of generating revenue with a very high profit margin has helped the company get through a hard year.’ said Antreas Themistokleous, an analyst at Exness. On the technical side the price has been trading in a descending triangle formation for the last 6 months. Currently the price is facing resistance at a point on the chart where is the crossing of the 20 day simple moving average line with the 50% of the daily Fibonacci retracement level. Given that there will be no big surprise percentage on the EPS at the date of the release the price most probably will continue to trade within the boundaries of the triangle formation in the short term. In the case of upward movement ( supported also by the oversold levels on the Stochastic oscillator) we might see some resistance around the $520 price area which consists of the upper band of the Bollinger bands and the 61.8% of the Fibonacci, whereas in the case of a downward continuation the first point of support would probably be found around the $490 area which is made up of the 50 & 100 moving averages, the lower band of Bollinger bands and is also just below the 38.2% of the Fibonacci.
NASDAQ:COST
by Exness_Official
COST - Who doesn't love costco?Costco is probably one of my favorite places to shop and I think the stock price over the last 14 years has proven that to be the case for a lot of people. The main issue I have with buying this stock is valuation and growth of the company. I don't see how they will be able to grow fast enough to support a 35+ PE ratio. Taking the fib from the 08 lows to the 2022 highs, we get targets around 395, 327, and 258 for the 38.2, 50.0, and 61.8 retracement levels. If you think about it, 258 from a valuation perspective only starts to make the stock a reasonable price at about a PE of 20 assuming 13.23 EPS. It looks beautiful from a long term trend perspective and I think it has many more years to grow, but I wouldn't touch it unless it was 308 or less purely from a fundamental perspective. Might look to short this one this year. This is not financial advice. Good Luck!
NASDAQ:COSTShort
by ChrisPtaco_32
1