Costco Earnings Trade Alert: Head & Shoulders

By Gareth Soloway of In the Money Stocks

President & Chief Market Strategist at IntheMoneyStocks • Dec 10, 2020 at 2:16 PM EST

Shares of Costco Wholesale Corp are set to report earnings after the close today. Analysts have loft expectations, with big beats expected on the top and bottom line.

Shares of Costco Wholesale Corp (COST) are set to report earnings after the close today. Analysts have loft expectations, with big beats expected on the top and bottom line. However, there is a Costco earnings trade alert that says otherwise when looking at the chart.

The Costco stock chart has a crystal clear head and shoulder on it. Should the neck-line break going into earnings at $371.50 and there is no support until $357.00. This implies a potential hard sell on earnings today from Costco. This Costco earnings trade alert comes with risk, but the risk/reward makes sense. Upside would be $388 to a double top while the downside is $357.00. In addition, the other technical indicators scream overbought on Costco.

(Click on image to enlarge)

Disclaimer:

All comments made by InTheMoneyStocks, LLC and its subsidiaries, instructors, and representatives are for educational and informational purposes only and should not be construed as investment advice regarding the purchase or sale of securities, or any other financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities mentioned herein. InTheMoneyStocks, LLC and its representatives assume no responsibility for your trading and investment results. All information on the website was obtained from sources believed to be reliable., but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. InTheMoneyStocks, LLC, its employees, representatives and affiliated individuals may have a position or effect transactions in the securities herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves a very high degree of risk. Futures and Options trading are not suitable for all investors. Past results are not indicative of future results. InTheMoneyStocks, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment results.