ISSAQUAH, WA – Costco Wholesale Corp (NASDAQ: COST) shares ended Thursday’s trading session with a modest gain, but the day’s chart reveals a story of fading momentum that could spell trouble for the stock heading into next week.
The retail giant closed at
2.23 (0.23%) for the day. While technically a positive close, the intraday price action paints a more bearish picture. The stock saw a strong morning rally, surging from an open of $982.24 to a daily high of $993.14 by midday. However, the enthusiasm did not last.
For the entire second half of the trading session, sellers took control, pushing the stock steadily downwards. It eventually bottomed out near the $984 level just before the market’s close, erasing the vast majority of its earlier gains. A slight uptick in after-hours trading to $986.04 did little to reverse the afternoon’s negative sentiment.
Outlook for Monday:
The key indicator from Thursday’s trading is the “late-day fade.” When a stock fails to hold its intraday highs and closes near its lows, it often signals that buying pressure is exhausted and sellers are becoming more aggressive. This pattern suggests a lack of conviction from investors at the current price levels.
Therefore, the forecast for Costco on Monday is cautious with a bias towards a lower open. The downward momentum from Thursday afternoon is likely to carry over, potentially leading to further selling as the new week begins. While Costco remains a fundamentally strong company, traders will be wary of the clear selling pressure that emerged and may look for a lower entry point.
Investors will be watching to see if the stock can find support and reverse this negative trend, or if the afternoon sell-off was the start of a new short-term downtrend from its recent highs.
Disclaimer: This article is based on an analysis of the provided image and represents an interpretation of market data. It is not financial advice. Stock market performance is subject to volatility and numerous external factors.
