Costco Wholesale Corporation (COST) runs membership warehouses in the US and other countries through subsidiaries. It sells branded and private-label products across multiple categories and operates e-commerce sites in the US, Canada, the UK, and other markets.
The stock trades on Nasdaq under the “COST” ticker and sits in the Consumer Defensive sector. The weekly chart is described as bullish while price stays above the $844.06 low.
Key Support And Trend Context
A move is expected to continue from the May 2022 low, with resistance at the February 2025 high of $1080. A break above $1080 is presented as a trigger to look for a pullback, with targets of $1515 or higher.
On the weekly wave count, ((I)) ended at $612.27 (April 2022) and ((II)) at $406.51 (May 2022). Then (I) of ((III)) ended at $1078.23 (February 2025) and (II) at $844.06, with w at $871.71, x at $1067.08, and y at $844.06.
From $844.06, ((1)) is marked at $1028.44 and ((2)) at $966, with (A) $960.46, (B) $1035.82, and (C) $966. The projected ((3)) range is $1149.3–1262.4, and a larger correction risk is noted if price breaks below the December 2025 low.
We see Costco in a strong bullish trend that began after the May 2022 bottom. The structure of this rally suggests we should remain positive as long as the price stays above the $844.06 low from late 2025. This level is the key line of defense for the current upward move.
The critical breakout above the February 2025 high of $1080 has already occurred, validating the bullish outlook. Recent performance confirms this strength, with Costco’s latest quarterly earnings showing a 9% rise in same-store sales, which is impressive given recent consumer spending data. The stock is currently consolidating around the $1125 level, building a base for the next move higher.
Options Strategy And Upside Levels
For the coming weeks, any pullback should be viewed as a buying opportunity for call options or bull call spreads. This aligns with the historical pattern we saw after the 2022 market correction, where buying dips in this name was a highly effective strategy. We are specifically looking for pullbacks in three or seven swings to establish these long positions.
The immediate upside target for this current wave is in the $1149 to $1262 range, an area that could be tested this summer. Successfully holding above this zone would set the stage for a much larger, multi-month rally toward the long-term objective of $1515. Traders can use these levels to select strike prices for options expiring in the later part of the year.
The primary risk to this outlook would be an unexpected, sharp reversal that breaks below the key $844.06 low. A move below that critical support would invalidate the immediate impulse wave and signal that a much larger and more complex correction is underway. Until then, the path of least resistance remains to the upside.
