Costco Wholesale Corp. (COST) Elliott Wave Analysis - TradingLounge Daily Chart

COST Elliott Wave Technical Analysis

FUNCTION: Counter Trend

MODE: Corrective

STRUCTURE: Flat

POSITION: Wave (B) of 4

DIRECTION: Downside in wave (C)

DETAILS: Intermediate wave (B) appears to have completed near the key $1000 psychological level. A continued decline is anticipated to confirm the start of wave (C).

Costco’s Elliott Wave daily chart indicates that wave (B) may have finalized around the $1000 resistance zone, a critical psychological barrier. Should this level hold, it reinforces the expectation of a downward move in wave (C), consistent with a broader corrective wave 4 structure.

Wave (C) is likely to extend lower as bearish momentum gains traction. Traders should focus on watching for price rejection near support zones and other technical confirmation signals that support the bearish continuation in wave (C).

Costco Wholesale Corp. (COST) – 1H Chart Elliott Wave Analysis

COST Elliott Wave Technical Analysis

FUNCTION: Counter Trend

MODE: Corrective

STRUCTURE: Flat

POSITION: Wave 3 of (C)

DIRECTION: Downside in wave 3

DETAILS: Wave (B) top looks established. Emerging nested wave formations suggest wave (C) is intensifying to the downside.

On the 1-hour timeframe, Costco is exhibiting classic signs of a deepening bearish impulse, with nested wave 1 and 2 structures implying that wave 3 of (C) is gaining strength. This suggests an acceleration in downward price action.

Traders should remain alert for breakout confirmation, increasing sell volume, and technical signals that support the continuation of wave 3. This phase of the pattern could yield sharp price movements, offering tactical short-trade setups in line with the Elliott Wave forecast.

Technical Analyst: Alessio Barretta

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