Costco has broken down from a rising trend

Jul 18

Costco has broken down from a rising trend with increased volume and a significant price drop exceeding 3%.
The trendline has not been retested after the breakdown, but a retest is not required.
The price has support around 910 and 875.
There is a declining RSI(21) and negative volume balance over the past month.
The price is trading below a green Ichimoku cloud, and Senkou Span B has crossed above Senkou Span A in the forward-looking cloud, indicating weakening momentum ahead.
From a technical standpoint, Costco appears negative in the medium term (one to six months).
This analysis does not represent a long-term forecast.

Fundamental analysts remain largely positive on the stock.

Disclaimer: I recently exited my position in Costco. The position had shown weak performance, and I am also reducing exposure to the USD.

Jul 19

Note

/home/palle/Nedlastinger/COST_2025-07-18_18-02-45.png

Charts can become cluttered with too many elements, but since Ichimoku is part of this analysis, I've included a version with the full Ichimoku indicator applied.

Jul 19

Note

3 hours ago

Trade active

How has it gone here after breaking down from an upward trend?
The stock is now in a downtrend and within a REC.
Note: MA200 > MA100 > MA50, volume balance is negative, RSI21 is falling, and the price is below a red Ichimoku cloud.

For my part, selling out was the right decision. That doesn’t mean Costco is a bad company — this may just be a temporary setback for long-term investors.

Always remember to do your own research and analysis before making any buy or sell decisions.