Yesterday at a glance: the wholesale giant dropped 2.46% early on and traded close to the $503.81 level.
Initial Jobless Claims data from United States will be released today at 13:30 UTC with analysts expecting a decline to 190,000. Potentially significant price fluctuations in Costco are expected to follow.
Crude Oil Inventories in United States fell short of market expectations (2.46 million) with a reading of 2.42 million, continuing the decline from the previous figure of 4.14 million.
Amid the market gloom, United States 10-Year Note Auction released yesterday at 18:01 UTC with a figure of 3.613, while the previous figure was 3.575. United States Cushing Crude Oil Inventories released yesterday at 15:30 UTC with a figure of 1 million, while the previous figure was 2.31 million.
Costco made an initial break below its 10 day Simple Moving Average at $509.64, a possible indication of a forthcoming negative trend. Costco is currently flirting with an active Fibonacci support level around $503.35. In contrast, Costco could begin to recover as it approaches significant support, now $4.25 away from $499.56. Dipping below could be an indication that further losses are ahead.
Several technical indicators are adding weight to the bearish momentum seen yesterday and forecasting Costco to extend its recent losses.
Costco was not the only decliner in the consumer staples sector; Procter & Gamble went down 1.04%, closed at $140.02. Philip Morris International lost 0.89% yesterday and closed at $101.29. Coca-Cola went down to $59.72, losing 0.58% after it closed at $60.07 yesterday.
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as projections for United States Initial Jobless Claims are set for a continuation of decline with 190,000 while previous data was 183,000; data will be released today at 13:30 UTC.
The stock has been trending positively for about a month. The wholesale company has gained 10.84% since its lowest print of $416.43 earlier this year.