COST +2% Rebound Defends $854 Support
$Costco(COST)$
COST Rallies +2.00%: Strong Rebound Eyes $880, Defends Key Support at $854
Latest Close Data
Closed at $871.86 (ET 2025-12-25), up +2.00% (+$17.07). The stock remains ~19% below its 52-week high of $1078.23.
Core Market Drivers
The rally follows a period of consolidation near its 52-week low, with broad market sentiment providing a tailwind.
Strong daily capital flow data showing net inflows of $61 million suggests renewed institutional interest at these levels.
Technical Analysis
Volume was 1.82M shares (VR 0.88), indicating quiet accumulation.
The 6-day RSI surged from 29.94 to 55.94, signaling a decisive exit from near-oversold conditions.
MACD histogram improved to -1.83 (DIF: -14.33, DEA: -13.41), showing bearish momentum is decelerating, hinting at a potential bullish crossover ahead.
Key Price Levels
Primary Support: $854.06 (yesterday's low & recent pivot).
Immediate Pivot: $871.86 (today's close).
Strong Resistance: $914.06 (recent swing high). A break above $880 opens the path to test this resistance.
Valuation Perspective
Forward P/E sits at 41.98, below its historical average of 45.25 and near the lower bound of its standard deviation (37.73 - 52.76), suggesting relative value is emerging after the recent pullback.
Analyst Targets
31 analysts cover COST with an average price target of $1030.40 (18% upside). Sentiment is bullish, with 11 Strong Buy, 12 Buy, 14 Hold, and only 1 Underperform ratings.
Weekly Outlook
Expect consolidation between $854 and $880 in the near term.
A sustained close above $880 could trigger a move toward the $914 resistance. The defense of the $854 support zone is critical for the bullish reversal thesis.
Risk Disclaimer
This analysis is for informational purposes only and not financial advice. Past performance is not indicative of future results. Investing involves risks, including the potential loss of principal. Conduct your own research before making any investment decisions.
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