AAL

This Retail Stock Has Even More Room to Run

COST already boasts a more than 22% lead for 2023

Digital Content Manager
Jul 20, 2023 at 3:08 PM
facebook X logo linkedin


Costco Wholesale Corporation (NASDAQ: COST) stock is up 0.8% to trade $558.27 at last check, after earlier scoring an 11-month high. The security has relied on support from its 20-day moving average since May, and now sports a 22.6% year-to-date lead. Even better, it looks like shares are not done rallying quiet yet, as they are flashing a historically bullish signal. 

Per Schaeffer's Quantitative Analyst Rocky White, Costco stock's latest surge comes amid historically low implied volatility (IV), which has been a bullish combination in the past. White's data shows six other signals in the last five years when COST was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower.

This is currently the case with the stock's SVI of 16%, which sits at the low 10th percentile of its annual range. One month after these signals, the shares were higher 67% of the time to average a 4% pop. From its current perch, a move of comparable magnitude would put the security at a one-year peak of $580.60.

 

COST 20 Day

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.