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- The IMF warns that 2023 will be a tougher year.
- Stock prices are in a downtrend for the past month.
Costco Wholesale Corp. (NASDAQ: COST) is a global retailer with warehouse club operations in eight countries. The company operates an international chain of warehouses under its name. With a constant rise in covid cases of the new variant, the world economy might be hurt again as the US experts say it is the worst variant presently facing the world.
To top this, Managing Director of International Monetary Fund (IMF) Kristalina Georgieva shared IMF’s prediction for 2023 and warned it to be a challenging year for most of the world economy as the major economies are all slowing down simultaneously. The domino effect might hit and hit the entire world, sending it into recession.
What can the IMF’s prediction mean?
The IMF predicted recession to hit the world economy, and markets may see a hard crunch as the world’s major economies are facing a setback. They also stated that they see a “ dry picture” for emerging markets in developing economies. The reason they gave is that on top of everything else, they get hit by interest rates and the appreciation of the dollar. In the prediction, where the IMF painted the coming economy in red, Georgieva added that saying the world has changed dramatically specified that it doesn’t mean “it is a more shock-prone world.”
What do prices tell?
COST prices are moving further and have formed a head and shoulder pattern followed by a sideways movement. The current prices are trading at $456.5, with an open at $454.65. Trading volume rose for some time before returning to the previous level. The EMA floats above the current price action.
If the price can sustain above the breakout level of $459.00, there is a high chance of a price rally up to $490.65. RSI stays akin to the lower border, supporting the notion of the surge in the near term. The MACD also records forfeiting sellers as buyers reflect an interest in the retail king.
Conclusion
The retail market is a never ending and ever developing sector which caters to the needs of every individual, firm and sector. Big chains like Costco will always lead the industry and expand across the globe. Investing in such ventures either for long term or short term is always a rational choice. Investors can look out for $443.54 level to buy the dip.
Technical levels
Support levels: $443.54 and $418.66
Resistance levels: $500.27 and $524.66
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
