Costco stock: robust financials and cash reserves fuel a 2.01% move despite technical resistance

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Costco rises 2.01% to $871.67 today

Highlights

Costco reported first-quarter 2026 revenue of $67.31 billion and net income of $2.00 billion, reflecting continued strong financial performance.
The company completed a $2.25 billion share repurchase program begun in January 2023 and holds over $17 billion in cash, supporting potential global expansion and a special dividend.
A December 2025 lawsuit in the U.S. Court of International Trade challenges executive-imposed tariffs, while ongoing store enhancements improve checkout and digital integration for members.

Share repurchase and cash reserves support expansion amid legal and operational changes

Costco reported first-quarter 2026 revenue of $67.31 billion and net income of $2.00 billion, and completed a $2.25 billion share repurchase program initiated in January 2023. The company maintains over $17 billion in cash, supporting its global expansion strategy and leaving open the potential for a special dividend. Additional developments include a December 2025 lawsuit in the U.S. Court of International Trade challenging certain executive-imposed tariffs and recent improvements to the in-store experience, such as streamlined checkout and enhanced digital integration for members.

Mixed momentum signals as support and resistance levels converge

The nearest dynamic support for COST is at the Ichimoku Kijun ($885.19), serving also as resistance, with further resistance around the MA-50 ($905.61). Momentum signals remain mixed: the daily MACD and ADX trend negative, while both daily RSI (43.88) and weekly RSI (37.40) show weak buying strength. Stoch RSI and Bull/Bear Power (BBP) are in overbought territory, but CCI is neutral, highlighting conflicting oscillators. The Awesome Oscillator is neutral and does not reinforce any clear trend, pointing to uncertainty in the current technical setup.

Downside bias as sustained rally remains unlikely in near term

For the next five trading days, COST is expected to trade within a typical volatility band of $860.00 to $880.00. There is a very low chance (less than 20%) of a sustained price increase, making further decline the more likely scenario. If COST pushes above $885.00, there is potential for a move toward the $900–$905 resistance cluster. Sustained trading below $860 would expose COST to additional downside, with potential buyer interest emerging near recent lows.

Anton Kharitonov, expert at Traders Union, sees Costco facing persistent technical and momentum weakness despite solid fundamentals. He notes the conflicting signals from price action and oscillators, with resistance levels remaining firm. Macro news is not enough to offset prevailing downside pressure in the near term. "Base case remains a move toward $860.00 unless COST can reclaim $885.00 — I remain cautious here."

Previously it was reported that Costco is trading below its key moving averages with persistent downside pressure, as momentum indicators such as MACD and ADX signal continued bearish dominance and dynamic resistance is present near $885. Oscillator readings are mixed, showing oversold conditions but little sustained upside probability, and the stock is likely to remain range-bound between support near $850 and resistance at $885 unless a decisive breakout occurs.

Source of Data: COST Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.