Costco retests pivotal resistance - Analysis - 27-05-2022

Costco's stock (COST) spiked after reporting a drop in profits margins, while total sales rose, as higher costs impacted profits. 

Costco's earnings rose to $52.6 billion in the third quarter from $45.3 billion a year ago, beating estimates of $51.5 billion. 

The downward correctional trend is still dominating in the short term, while exiting an ascending price channel that guided recent trading, with negative pressure from the 50-day SMA, while retesting the pivotal resistance of 469.00, marking a profit of 5.65%, or 24.88 points, and settling eventually at 464.99, with trading volumes surpassing 5.9 million shares, above 10-day averages of 4.3 million shares. 

Therefore we expect the stock to return lower, targeting the support of 436.17, provided the pivotal resistance of 469.00 holds on.

Expected trend for today: Bearish