Chart of the day

Where do we stand fundamentally?

Costco (COST) stock is experiencing notable activity following recent developments. The company’s revenue in 2024 reached $254.45 billion, marking a 5% year-over-year increase, while earnings rose by 17%. Noteworthy news includes Costco’s collaboration with Peloton to sell high-end Bike+ models in stores and online during the holiday season. Additionally, Costco's new membership verification approach, similar to Netflix’s account-sharing controls, aims to boost membership revenue by requiring membership card scans at entry.

COST is supported by 880 and is testing 900 for an extension in the fifth wave for a possible target of 1100. We need confirmation of a break above 900 for an extension of the mentioned level for an upside continuation in the uptrend fifth Elliott Wave to 1100. Invalidation of this immediate upside extension could come upon a break below 870.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle continuation is much lower at 610 meaning we are in the strong bull uptrend. As said the continuation of a retest extension could lead to an 1100 target in the medium-term to long-term if the COST sustains a breakout above 900 which is being tested.

_{Try a long trade entry with a stop loss below 820 to target 1100 and higher.}