Is $COST Recession Proof? – October 13, 2023
This is Scott with your Chart of the Day. I want to take a look at Costco ( NASDAQ: COST ).
I don’t know about your family, but in our house, it doesn’t really matter what the economy is doing, we still keep that Costco ( NASDAQ: COST ) membership and we still shop at Costco ( NASDAQ: COST ). Because we believe, at least my wife believes, that it’s the best bang for our bucks.
You can see that it doesn’t really matter what happens in the world, Costco ( NASDAQ: COST ) is still in an uptrend and above all the major moving averages. So this is definitely a stock that I think we should be paying attention to.
If we zoom out to tell the longer story, you can see that I have drawn this downward-sloping trendline, where Costco ( NASDAQ: COST ) chopped a lot throughout 2022. It tightened up in 2023 and finally broke out of that weird sloppy action and has since been trending up most of the major moving averages.
Yes, it has dropped down, but the buyers have stepped in where they needed to and have supported the stock ever since. I definitely see a clear level of resistance on Costco ( NASDAQ: COST ), right around that 571.30 level. So I am going to set an alert on my software right at 571.30 and look for an eventual resolution of this consolidation, out of this base to the upside.
That is definitely a level that I think you should be setting on your software too. Because we can see it. It tried to get above and couldn’t. It tried to get above and couldn’t. And then over the last couple of weeks here it tried, and tried, and tried again and just couldn’t do it, but it didn’t really break down all the way. It dipped down, and buyers showed up and brought it back in trend.
So again, Costco ( NASDAQ: COST ) is definitely a stock that I think we should watch even in this market volatility.
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