Looks just like Costco (NASDAQ:COST) or BJ’s right? It is almost the same. PriceSmart (NASDAQ:PSMT) is known as the Costco of Central America and the Caribbean. So when you are vacationing at a beach house in Costa Rica that you found on Air BnB this is where you go for your 24 rolls of toilet paper and 10 lb beef tenderloin. The same drab warehouse feel inside and lots of everything.
Aside from being located in everyplace you want to go on vacation instead of in your back yard, there is one more big difference right now. PriceSmart stock looks ready to move to the upside, where Costco stock is still drifting lower. The chart below tells the story.
The stock started higher at the beginning of the year and continued until the 4th of July. But then the stock gapped down and continued until it found a low in August. That low was a higher low than the January low. And from that point the stock has made a series of higher highs and higher lows, an uptrend. The latest higher high has resulted in a consolidation under $87.
Momentum suggests it cold break to the upside. The RSI is rising and in the bullish zone while the MACD is looking to avoid a cross and is positive. The Bollinger Bands® are opening to the upside as well. A move higher sees a gap to fill to 89.30 and then the 94.50 area as the next resistance area. Should t fall under 85 though, look for possible support near 82.50.
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