Costco shares slip amid strong support from the MA-50 at $954.89

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Costco slips 1.20% this week

Highlights

Costco trades well above major moving average levels, confirming a robust underlying bullish technical structure.
Momentum signals are mixed with ongoing bullish pressure but increasing overbought warnings, indicating caution for new buyers.
Shares are likely to consolidate between $960 and $1,035 this week, with equal probability of breakout or pullback.

Earnings and membership gains drive investor confidence amid strong buybacks

Costco reported strong second quarter fiscal 2026 results, with total revenue rising to about $69.6 billion, up 9.2% year-over-year, and diluted earnings per share growing nearly 14% to $4.58. Membership fees increased 14% to $2.68 billion for the first 24 weeks of the fiscal year, and the company continued to return capital to shareholders through $1.15 billion in dividends and $419 million in share repurchases. Digital-enabled sales saw robust growth, while leadership reiterated their ongoing review of a potential special dividend. Costco also remains active in pursuing the recovery of tariff payments from the US government.

Overbought signals emerge as upside momentum persists this week

Weekly technicals show Costco trading above all major moving averages on the W1 chart, with the MA-50 near-term support at $954.89 and the MA-20 at $933.68 providing reinforcement. Resistance stands near $1,035, with support close to $960 on the weekly timeframe. The MACD and RSI still indicate bullish momentum, but overbought warnings from the Bull/Bear Power, CCI, and Stochastic RSI highlight stretched conditions. ADX remains neutral, showing a lack of strong trend conviction, and volatility for the week registered at 4.27%, while the Awesome Oscillator continues to support upward momentum.

Neutral outlook ahead as consolidation and overbought risks compete

For the coming week, indicators suggest a baseline of price consolidation within the $960 to $1,035 corridor, as mixed momentum and overbought warnings balance out the underlying bullish structure. There is an equal probability of either a breakout higher or a pullback, with W1 signals split between bullish and neutral/hot readings. If buying returns, Costco could test resistance at $1,035, but a fall below $960 may trigger profit-taking and further downside, especially if overbought metrics persist. Monitoring the W1 momentum is key, as sustainability above the MA-50 keeps the broader uptrend in play.

Previously it was reported that Costco shares are trading below their short-term moving average but remain above medium- and long-term levels, indicating some immediate pressure while uptrends hold intact. Momentum signals are mixed, with bullish MACD and supportive RSI balanced by cautious short-term oscillators and downside price action, as investors await the upcoming earnings release for clarity on direction.

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

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