Earnings beat fuels rally: Can Costco stock break $960.22 resistance?

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Costco jumps 3% today on earnings

Highlights

Costco reported fourth-quarter fiscal 2026 revenue of $95.723 billion, up from $86.156 billion a year earlier.
Net income rose to $2.998 billion, or $6.75 per diluted share, reflecting improved profitability year over year.
Shares of Costco are showing strong short- and medium-term momentum with overbought technicals and a projected trading range of $912.75 to $934.05.

Revenue expansion and profit growth drive bullish sentiment

Costco's recently released fourth-quarter fiscal 2026 results show robust year-over-year growth, with total revenue rising to $95.723 billion for the 16 weeks ending August 30, 2026, up from $86.156 billion a year prior, according to Quiverquant. This surge in topline revenue points to increased consumer demand and operational momentum, actively fueling buying interest in shares. Additionally, net income improvement to $2.998 billion, or $6.75 per diluted share, represents enhanced profitability and supports the current appetite for the stock.

Buyer dominance as momentum weakens below long-term resistance

Technically, COST is trading above the MA-20 and MA-50, currently at $900.33 and $897.67, respectively, but remains below the long-term MA-200 at $960.22. The Ichimoku Kijun at $903.3 marks immediate support. MACD is indicating a Buy, while the ADX is neutral, highlighting moderate trend strength. Overbought conditions are evident in the RSI at 74.39, along with Stoch RSI, CCI, and Bull/Bear Power also reflecting strong buyer dominance. The Awesome Oscillator confirms the ongoing upward momentum, but a divergence is present given the stretched oscillators and neutral ADX.

Bullish breakout favored as consolidation risk persists

Looking to the short term, the expected trading range is between $912.75 and $934.05. Upside probability is high at 73%, supported by recent strength, while a downside move has a 27% chance if support levels are breached. As long as the price holds within this range, a sideways consolidation is likely; a bullish continuation would require a breakout above the upper band, while a close below immediate support could prompt a corrective pullback.

Viktoras Karapetjanc, expert at Traders Union, sees Costco stock supported by strong fundamentals and sustained buying interest. He notes robust top-line growth and improving profitability are energizing sentiment. Technicals reveal some overbought signals but price action remains constructive above key support levels. The analyst believes momentum and positive earnings flow justify a continued bullish bias. "As long as demand stays strong and support holds, I expect Costco to sustain its upward trajectory in the near term."

In a recent review, analysts highlighted Costco’s resilient performance and long-term growth prospects despite ongoing market pressures. The current technical setup strengthens this positive outlook, and with upside probability at 73%, traders should watch for a potential breakout above $934.05 to signal renewed bullish momentum.

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.