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February 28, 2023
A quick look at yesterday: pronounced bearish market sentiment ensured that the wholesale company made a notable 0.32% loss yesterday, declining $1.58 and ultimately closing at $487.03.
United States Consumer Confidence data will be released today at 15:00 UTC, with an expected improvement to 108.5. Costco reaction to indicator information will follow.
This down-slide takes place while positive United States macroeconomics indicators data was published earlier – United States Pending Home Sales improved upon its previous reading of 1.1% with a new data release of 8.1%. Highly important Core Durable Goods Orders data from United States beat analyst expectations of 0.1% with a reading of 0.7%.
Meanwhile, data from United States concerning Core Durable Goods Orders was released yesterday at 13:30 UTC. Newly published figures emphasized continued decline from last month's figure of 5.1% to -4.5% this month.
Costco chart analysis: Costco could begin to recover as it approaches significant support, now $2.89 away from $484.14. Dipping below could be an indication that further losses are ahead. Trend-focused traders would be interested to note 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. Analysis based on the asset volatility indicates that Costco's lower Bollinger Band® is at $484.06, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
All in all, the technical analysis suggests Costco has no clear-cut direction.
Costco was not the only decliner in the consumer staples sector; Walmart went down to $141.44, losing 0.72% after it closed at $142.47 yesterday.
On the other hand, positive performances could be seen by looking at other consumer staples stocks as Anheuser-Busch was up 0.66%. Unilever added 0.44% to its value, and traded at $50.5.
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as tomorrow at 15:30 UTC data for United States Crude Oil Inventories will be released, with an expected decline to 440,000 from the preceding figure of 7.65 million.
In addition, United States Consumer Confidence is projected to outperform its last figure with 108.5. It previously stood at 107.1; data will be released today at 15:00 UTC.
Furthermore, United States ISM Manufacturing PMI (Feb) scheduled to come out tomorrow at 15:00 UTC.
This year has been a bright one for the wholesale giant after trading as low as $416.43 and going on to appreciate by 7.42% year to date.
