The USD 137.31 support, currently tested, should allow Costco Wholesale to rally again.

The company has an excellent Surperformance rating that emphasize the business predictability and the valuation level. The current share quote displays a +12% potential to reach the consensus average target price. Moreover, none analyst is on the “sell” side.

After several weeks of horizontal fluctuations within the mid-term range USD 137.3 / USD 155.9, the stock is coming back close to the lower limit of the range. Daily moving averages are flat and technical indicators illustrate the oversold situation. Moreover, the rising trend line in weekly data strengthen the relevance of the support area.

In consequence, investors may open a long position at current prices and target a reversal towards the USD 148 pivot point. A stop loss should be set at USD 133.8.