Costco: ⬆️ Buy
– Costco broke resistance zone
– Likely to rise to resistance level 1140.00
Costco recently broke the resistance zone between the resistance level 1080.00 and the all-time high 1100.00 (which stopped the impulse wave (1) in the middle of May).
The breakout of this resistance zone accelerated the active impulse wave 3 of the intermediate impulse wave (3) from the end of September.
Given the clear daily uptrend, Costco can be expected to rise further toward the next resistance level 1140.00 (target price for the completion of the active impulse wave (3)). The stock jumped this week after Costco announced a $30 special dividend (payable on 4 December to holders of record on 24 November) and reported a 12.6% rise in October net sales, with comparable sales up 11.1%.
After reaching 1140.00, Costco can correct down toward the support trendline of the daily up channel near 1080.00. The bullish view changes only if 1080.00 breaks on a daily close.
Buyers keep the upper hand above 1080.00. The share price is expected to drop by about $30 on the ex-dividend date around 24 November, which could bring the stock back toward 1080.00 without breaking the uptrend. Strong first-quarter results expected around 10 December would then support the next move toward 1140.00.