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February 22, 2023
After ending yesterday at $501.74, Costco ascended as high as $505.46 before meeting resistance. Undeterred, Costco posted a fresh rally late in the trading session targeting $502.58.
United States FOMC Meeting Minutes is next.
This uncertain state for Costco is reflected by published market data as United States Existing Home Sales (Jan) came out at 4 million, while a consensus of analysts was expecting 4 million. United States 2-Year Note Auction released yesterday at 18:00 UTC with a figure of 4.673, while the previous figure was 4.139. United States Existing Home Sales released earlier showed a marked improvement to -0.7% from the preceding data of -2.2%, but fell short of the 2% figure forecast by a consensus of market analysts.
Costco is approaching key support, around $5.05 away from $497.53. 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. Costco made an initial breakout above its 21 day Simple Moving Average at $505.13, a potential indicator of a newly emerging bullish phase. Costco's upper Bollinger Band® is at $522 and the lower is $491.75. On the other hand, note that price action remains constrained around the key Fibonacci level of $502.82 currently serving as support. If price action breaks below, the next Fib hurdle is $496.46.
Despite muted price action in Costco, chart analysis indicates it is positioned for a bullish run in the short term.
Meanwhile, mixed performances are seen in other consumer staples stocks as Walmart is down 1.85% from the beginning of the session and now trades around $144.6. Anheuser-Busch is up 1.68%. Procter & Gamble is up 0.76%.
Furthermore, the market is looking at as things stand, upcoming United States Crude Oil Inventories data is projected to fall short of market expectations with newly published data of 1.17 million, following on from the preceding figure of 16.28 million. New data is set to be published tomorrow at 16:00 UTC. United States Initial Jobless Claims expected to decline to 200,000 while its preceding data was 194,000, data will be available tomorrow at 13:30 UTC. United States GDP is expected tomorrow at 13:30 UTC.
The stock has been trending positively for about a month. This year has been a bright one for the wholesale giant after trading as low as $416.43 and going on to appreciate by 10.69% year to date.
