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June 02, 2023
After ending yesterday at $512.6, Costco rallied to $518.5 today, hitting its highest point in 3 months. It later lost $5.91 and closed at $512.59.
This uncertain state for Costco is reflected by published market data as United States Non Farm Payrolls improved upon its previous reading of 294,000 with a new data release of 339,000. Highly important Average Hourly Earnings data from United States beat analyst expectations of 0.4% with a reading of 0.3%. United States Unemployment Rate published today at 12:30 UTC came out at 3.7, falling short of the 3.5 projections and continuing its decline from the previous 3.4 figure.
Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Analysis based on the asset volatility indicates that Costco's upper Bollinger Band® is at $516.37, suggesting that a downward move may follow. Technical analysis shows that Costco is approaching key support, around $7.37 away from $505.22. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.
Notwithstanding Costco's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Meanwhile, mixed performances were seen by other consumer staples stocks as Coca-Cola was up 1.93%. Procter & Gamble added 1.78% to its value, and traded at $146.52. Philip Morris International traded at $91.78 after closing today's trading day at $90.16 (up 1.8%).
This year has been a bright one for the wholesale giant after trading as low as $446.69 and going on to appreciate by 13.09% year to date.
