Costco Wholesale Corp. (COST) Elliott Wave technical analysis [Video]

COST Elliott Wave technical analysis

Function: Counter Trend.

Mode: Corrective.

Structure: Flat.

Position: Wave (B) of 4.

Direction: Downside in wave (C).

Details: Intermediate wave (B) may have completed around $1000. We expect more downside action to confirm the move lower in wave (C).

Costco’s daily Elliott Wave structure suggests the completion of wave (B) close to the psychological resistance level at $1000. If this holds, it sets the stage for wave (C) to begin on the downside. This movement would align with the ongoing larger correction under wave 4.

Wave (C) is expected to develop further as downward pressure increases, confirming the bearish correction. Market participants should monitor key support zones and watch for price rejection signals to validate the start of wave (C).

COST Elliott Wave technical analysis

Function: Counter Trend.

Mode: Corrective.

Structure: Flat.

Position: Wave 3 of (C).

Direction: Downside in wave 3.

Details: The wave (B) top appears complete. Early nested wave formations suggest wave (C) is accelerating lower.

On the 1-hour chart, Costco shows signs of forming nested wave 1s and 2s, indicating readiness for a strong push down in wave 3 of (C). The structure supports a developing impulsive move as selling pressure builds.

Traders should be cautious, watching for volume increases and confirmation setups that could validate the unfolding of wave 3. This phase may deliver sharp price declines, offering potential trading opportunities in line with the trend.