Costco stock hovers above key support at $946.42 as short-term weakness prevails: weekly review

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Costco rises 0.68% over the week

Highlights

Costco is experiencing medium-term selling pressure with price action confined below short-term moving averages and limited upward momentum.
Oscillator signals indicate dominant selling, oversold conditions, and weak trend strength, despite a modest recent price uptick.
The expected 7-day trading range is $946.42 to $958.50, with downside favored unless a breakout above resistance triggers renewed bullish momentum.

Dividend hike and resilient revenue as margin pressures persist this week

Costco reported its third-quarter results for the period ending May 10, 2026, with revenue of $70.53 billion and net income of $2.19 billion, highlighting strong gasoline volumes and notable gains in the wellness category. The company raised its dividend by 13% to $1.47 per share and remains focused on growing its member base while maintaining a value-driven approach. Additionally, Costco continues to address margin pressures and has reinforced its commitment to returning capital to shareholders through dividends and share buybacks.

Short-term weakness signaled as weekly oscillators remain bearish

On the weekly chart, COST remains held by dynamic support at its MA-50 ($958.00) but sits under MA-20 ($996.63), signaling persistent short-term weakness. Weekly oscillators are broadly bearish, with the RSI at a muted 45.28 and multiple oversold signals issued by the CCI, Stochastic RSI, and Bull/Bear Power. The MACD, however, gives a contrary strong buy signal, while the ADX reflects a weak, neutral trend. Support rests at $946.42 and initial resistance stands at $958.50, with weekly volatility at 8.06%.

Rangebound outlook and downside risk as sellers dominate next week

For the next five trading days, Costco is expected to consolidate between $946.42 and $958.50, barring a clear directional break. Weekly indicator alignment suggests sellers have the upper hand, supported by oversold readings and little upward momentum, so further downside cannot be ruled out unless a bullish move above resistance is confirmed. A sideways movement within this range is the baseline scenario, while a breach below $946.42 would likely result in increased downside pressure. Conversely, confirmation of momentum with a close above $958.50 could prompt a short-term rebound.

Jainam Mehta, market strategist, sees Costco holding above the weekly MA-50 at $958.00 after a subdued week, with technical signals showing continued selling pressure despite a modest bounce. He notes that strong quarterly results and a boosted dividend underscore Costco's resilience, yet bearish oscillator readings and lackluster momentum cap near-term enthusiasm. The analyst expects Costco to consolidate between $946.42 and $958.50 in the coming week, with sellers maintaining the upper hand unless buyers can force a breakout. "Until we see a confirmed close above resistance at $958.50, I prefer to stay cautious and let this consolidation play out," Mehta says.

Earlier, analysts noted that U.S. retailers were seeing increasingly selective consumer spending and heightened pressure on lower-income households due to persistently high fuel costs and ongoing inflation concerns. In light of Costco’s recent resilience in key business segments and its ability to attract value-seeking consumers, any decisive move above or below the $946.42–$958.50 range should be monitored as a potential signal for the next directional trend.

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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