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Costco Sees an Extremely Damaging Flush In Aftermath of Amazon's Big Whole Foods Deal

TheStreet
Costco Sees an Extremely Damaging Flush In Aftermath of Amazon's Big Whole Foods Deal

Costco (COST) suffered its worst breakdown since August 2015, on Friday. The retailer shed more than 7% as volume surged to nearly 10 times its 50-day average. This extremely damaging flush began with a huge downside gap leaving behind an ominous top in place. For patient Costco investors, there is light at the end of the tunnel as shares begin to show signs of stabilization today. Back in early February, Costco began a powerful new rally leg with the help of high volume breakout gap. This news inspired ramp lifted the stock over 2.4%, ending a 10-week consolidation in the process. After a big move throughout February, Costco filled the Feb. 2 breakout gap in mid March. A fresh rally leg followed