Analysis: COST

Costco (COST) is a stock that continues to move forward, with strong volume - institutional sponsorship - and solid technicals.

The daily chart (chaikin, blue) shows robust money flow and good relative strength. Clearly, Costco is the best name in retail, and we could see the power gauge turn bullish soon. A move above 520 would sharpen the pencil for technicians here, the recent trend of higher lows is evident.

The weekly chart is a bit more challenging, thanks to the sizable drop in May. But there is work to be done and the money flow and relative strength are improving. COST is one of our favorite names in the portfolio.