Chart of the Day: Is Costco Finding a Low?

Avatar photo Bob Lang on July 27, 2026

Costco

Costco ($COST) shares failed to break out in late May and are working their way toward making a bottom. It has been difficult to stay with this stock through recent down moves. The channel is active, showing a downtrend of lower highs and lower lows.

The chart shows mostly purple and pink candles, implying a bearish condition. However, we could make a case for the indicators being washed out, meaning they are bottoming just as it appears the price may be doing so as well.

Money flow is negative but turning up, while stochastics (momentum) remains weak. The parabolic SAR (stop and reverse system) in the top pane is back to bullish, and the MACD is also flashing a buy signal here.

While we cannot yet classify the chart as bullish, it is showing some green shoots.

Some good numbers from other retailers might have the effect of “pin action” for Costco, and a move above resistance at $990-$1,000 would very bullish.

We like Costco in TheStreet Pro Portfolio and rate it a One, or “buy at anytime.”

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At the time of publication, TheStreet Pro Portfolio was long COST.

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Posted by Bob Lang

Bob Lang is one of the country’s top options traders, an expert market technician, and a highly sought-after mentor and teacher. He is a private trader in equity and option markets and created his own hedge fund and options trading company called Explosive Options. He is also founder and Chief Options Analyst at Aztec Capital, LLC. He has been a regular contributor to TheStreet Pro's paid subscription products since 2009. Lang is both a short-term trader and long-term stock investor. He utilizes technical and fundamental analysis to find investment opportunities. His coverage for TheStreet Pro specializes in options trading, stock investing, and technical analysis. One of Lang’s claims to fame is his creation of the acronym FANG to describe the top tech companies at the time (Facebook, Amazon, Netflix, and Google). The acronym has since expanded considerably and is still widely used today. He is the author of the book “Know Your Options” and holds an MBA from the University of Redlands. When he’s not providing financial commentary for TheStreet, he can be found on the tennis court, reading, or traveling.

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