Costco Rallies into Holiday Weekend, Signaling Strength for Monday’s Open

NEW YORK – Costco Wholesale Corp. (COST) charged into the Independence Day holiday weekend with a strong finish on Wednesday, demonstrating significant investor confidence and setting a bullish tone for next week’s trading. The retail giant closed the session at

4.66 (0.47%).

Wednesday’s trading was a tale of impressive resilience. After opening at $982.41, the stock faced midday selling pressure that drove it to a low of $977.32. However, buyers stepped in with force, reversing the decline and powering the stock to a session high of $987.67. Critically, Costco managed to hold these gains, closing just cents below its peak for the day.

This pattern, where a stock weathers an intraday dip and closes near its high, is a classic technical indicator of strength. It suggests that sellers were unable to push the price down and that buyers maintained control into the final bell. Adding to this positive sentiment, after-hours trading remained perfectly flat, indicating that no negative pressure emerged after the market closed.

Outlook for Monday:

Given the strong buying pressure and the powerful close on Wednesday, the outlook for Costco’s stock on Monday is decidedly positive.

Here’s what the chart suggests for the week ahead:

1. Powerful Finish: Closing at the peak of the daily trading range is a strong bullish signal, often preceding further upward movement.

2. “Buy the Dip” Mentality: The sharp recovery from the day’s low shows that investors are eager to buy Costco on any weakness, providing a solid floor of support for the stock.

3. Sustained Momentum: The stock built upon its previous close of $982.36 and established a clear upward trajectory by the end of the day.

Barring any unexpected negative market-wide news over the long weekend, investors can expect this upward momentum to carry over into Monday’s session. The immediate target for bulls will be to break through the day’s high of $987.67 and push toward new levels. The underlying strength shown on Wednesday suggests that Costco is well-positioned for a potential rally to start the week.