Bullish inverse head and shoulders formation on the daily chart for Costco. Earnings around the corner with expectations of a huge beat. Costco has their membership fees/incentives to help protect margins as inflation becomes a factor in everything from supplies to freight. Earnings whispers are $2.44 a share with a consensus of at least $2.28/share.
Stoch RSI compression repeated itself. The last time Stoch RSI compressed/consolidated right before earnings it went on a huge 18% run over the next 98 days, 27% over the next 186 days, and 22% by the next earnings report (196 days later).
"History doesn't repeat itself but it often rhymes"
I expect a similar breakout on earnings with this repeated pattern although price action has been terrible this earnings season even with beats & good guidance. COST could be the exception. Probably smartest to play it through options to risk less.
earningswhispers.com/stocks/cost
Stoch RSI compression repeated itself. The last time Stoch RSI compressed/consolidated right before earnings it went on a huge 18% run over the next 98 days, 27% over the next 186 days, and 22% by the next earnings report (196 days later).
"History doesn't repeat itself but it often rhymes"
I expect a similar breakout on earnings with this repeated pattern although price action has been terrible this earnings season even with beats & good guidance. COST could be the exception. Probably smartest to play it through options to risk less.
earningswhispers.com/stocks/cost
Note
5yr chart annotatedTrade active
Bad price action off of incredible earnings and good guidance; not unusual this earnings season but after the poor initial price action I expect it to take off. 4H chart. Initiating long calls tomorrow. Sometimes it's best to wait till after earnings, especially this earnings season
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.