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May 23, 2023
A quick look at yesterday: a tough session dominated by bearish sentiment left Costco $4.65 lower, while setting a $488.54 to $497 session range.
United States Building Permits is next today at 12:00 UTC.
Chart analysis indicates Costco could begin to recover as it approaches significant support, now $3.93 away from $487.94. Dipping below could be an indication that further losses are ahead. Trend and momentum analysis indicates that Costco made an initial break below its 50 day Simple Moving Average at $494.35, a possible indication of a forthcoming negative trend. According to asset volatility analysis, Bollinger Bands® shows an indication of recovery: the lower band is at $488.73, a low enough level to, generally, suggest that Costco is trading below its fair value.
Overall, the technical outlook suggests Costco is likely to remain muted for the immediate future, with no clear-cut direction.
Costco was not the only decliner in the consumer staples sector; Procter & Gamble falls 2.62% yesterday to close at $153.17. PepsiCo falls 2.71% yesterday to close at $191.84. Coca-Cola closed at $61.51 (down 2.1%).
Looking ahead, ongoing depreciation may be prolonged as United States Crude Oil Inventories expected to decline to -920,000 while its preceding data was 5 million, data will be available tomorrow at 14:30 UTC.
Furthermore, United States New Home Sales (Apr) scheduled to come out today at 14:00 UTC. United States Services PMI figure is projected at 52.6. It previously stood at 53.6; data will be released today at 13:45 UTC.
Trading mostly sideways for 2 months. This year has been a bright one for the wholesale giant after trading as low as $429.48 and going on to appreciate by 8.43% year to date.
