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March 05, 2023
Friday at a glance: in Friday's bearish session, the wholesale giant shed around 2.15% in quick fashion, found support around the $465.36 level and finally closed at $475.26. In contrast, the day's events followed Thursday's session in which the stock closed at $485.69.
With regards to technical trend indicators, chart analysis show that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Asset volatility analysis shows that Costco's lower Bollinger Band® is at $472.03, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. Support/Resistance levels obtained from chart analysis indicate that although Costco is pointing down today (was as low as $465.36), it's climbing away from the $461.53 support line and is now $13.73 above it.
With market volatility ebbing, the current technical outlook indicates Costco will remain range-bound for the immediate future.
Costco was not the only decliner in the consumer staples sector; Unilever descends 1.11% Friday to close at $50.4.
On the other hand, positive performances could be seen by looking at other consumer staples stocks as Anheuser-Busch added 1.62% to its value, and traded at $62.08. Procter & Gamble gained 0.73%, as it traded at $140.95.
Pointing downwards for around 29 days. The wholesale giant has fallen back around 20.12% from the significant high of $608.05 set 10 months ago.
