Costco in a free fall - Analysis - 26-09-2022

Costco's stock (COST) kept falling in the intraday levels, after revealing fourth quarter results on Thursday and reporting an increase in labor and shipping costs, and lower profit margins than expected, sending the stock down 4.26%, or 20.77 points, and settling at 466.40, with trading volumes surpassing 5.3 million shares, up from 10-day averages of 2.5 million shares. 

Technically, the stock is weighed down by a negative pattern that formed in the short term, the Head and Shoulders pattern, with negative pressure from the 50-day SMA, coupled with negative signals from the RSI despite reaching oversold levels. 

Therefore we expect more losses for the stock, targeting the support of 443.25, provided it holds below 483.80.

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Expected trend for today: Bearish