The relatively new Costco store me near me in New Jersey is always busy or at least that is the way it seems when I drive by it. They sell gasoline cheaper than anyone else in the area but they do not have a liquor license. You can't have everything I guess. In addition to a constant stream of customers, the charts and indicators of Costco Wholesale Group (COST) look strong and the stock is probably headed higher.
In the daily bar chart of COST, below, we can see a strong uptrend the past 12 months. Prices are clearly above the rising 50-day moving average line and the bullish 200-day line.
The daily On-Balance-Volume (OBV) line was flattish or steady from December to early June which was telling us that traders and investors basically held their positions as COST traded sideways during that period. The OBV line has been improving since early June and this helps to confirm the price advance since May.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since April. This too is bullish.
In the weekly bar chart of COST, below, we can see a longer-term bullish picture. COST has been above the rising 40-week moving average line for a number of months. The weekly OBV line shows more aggressive buying and accumulation for the past three years -- impressive.
The weekly MACD oscillator turned bullish in November 2017 and it is still very positive.
Bottom line: COST has risen nicely this year but I would not consider it extended. Traders could probe the long side of COST around $220 risking to $205 for now and look for further gains to the $245-$250 area.