Costco Wholesale Corp. (COST US)

Costco Wholesale Corporation is a membership warehouse club that sells a variety of food, automotive supplies, toys, hardware, sporting goods, jewellery, electronics, apparel, health, and beauty aids, as well as other goods with a robust international footprint. The company serves customers through its warehouses and e-commerce sites.

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Technically, a developing symmetrical triangle pattern in an uptrend presents a promising investment opportunity (see the black converging trendlines on the main chart). The contraction of the price range can build suppressed buying pressure, and a breakout to the upside.

The price in an upward sloping linear regression channel pattern also supports a bullish bias (see the insert). This pattern illustrates a sustained long-term uptrend, with the price consistently moving within and often testing the upper half of the channel. As the share price frequently trades near or above the regression line, indicating persistent buying interest and strong underlying demand, it further reinforces the bullish stance.

Technical analysis

The lower panel shows the confluence of technical analysis indicators. A positive reading supports a bullish bias, whereas a negative reading supports a bearish bias.