Dropping for four consecutive days, Costco closes at $495 (down 0.23%)

Yesterday at a glance: the wholesale giant has recovered almost all of its session losses after dipping down to $491.89 yesterday.

United States Initial Jobless Claims data will be released today at 12:30 UTC, with an expected improvement to 254,000. Costco reaction to indicator information will follow.

This down-slide takes place while positive United States macroeconomics indicators data was published earlier – United States Crude Oil Inventories improved upon its previous reading of 2.95 million with a new data release of 5 million.

While price action maintains a negative bias, United States Building Permits (Apr) released yesterday at 12:30 UTC with a figure of 1.42 million, while the previous figure was 1.44 million. United States 20-Year Bond Auction came out at 3.954.

Costco chart analysis: after reaching the $491.93 support zone, Costco bounced and climbed $3.07 above it. Concerning technical analysis and more specifically, trend indicators, Costco made an initial break below its 50 day Simple Moving Average at $493.57, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of $495.27 currently serving as support. If price action breaks below, the next Fib hurdle is $486.05. Asset volatility analysis shows that Costco's lower Bollinger Band® is at $488.53, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.

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; Anheuser-Busch lost 1.56% yesterday and closed at $58.76. PepsiCo lost 0.71% yesterday and closed at $192.06. Mondelez International went down to $77.23, losing 0.73% after it closed at $77.8 yesterday.

Some optimism can drawn from the fact that United States Initial Jobless Claims is projected to outperform its last figure with 254,000. It previously stood at 264,000; data will be released today at 12:30 UTC.

Furthermore, United States Philadelphia Fed Manufacturing Index (May) will be released today at 12:30 UTC. United States Existing Home Sales (Apr) is scheduled for today at 14:00 UTC.

Trading mostly sideways for 2 months. This year has been a bright one for the wholesale company after trading as low as $416.43 and going on to appreciate by 9.18% year to date.