action packed chart of COST; to the moon off earnings!
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.
www.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.
www.earningswhispers.com/stocks/cost
Comment:
5yr chart annotated
Trade 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