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Key Takeaways
- Walmart shares were slightly higher Wednesday morning after hitting a new record merry yesterday following a strong earnings report from the retail giant.
- The stock formed a shooting star on Tuesday, a annulment candlestick pattern that appears after an extended uptrend. The pattern formed on the highest daily volume since last September, possibly indicating buying exhaustion.
- Investors should watch major support levels on Walmart’s blueprint around $81, $71, and $61.
- A bars pattern projects a price target in the stock of around $89 and indicates the shares may be thither to enter a consolidation phase.
Walmart (WMT) shares were slightly higher Wednesday morning after hitting a new souvenir high yesterday following a strong earnings report from the retail giant.
During the earnings call, CEO Douglas McMillon touch oned analysts that the retailer continues to capture market share gains from higher-income households, adding that he guesses the trend to last as these consumers have embraced the company’s membership program and same-day delivery service.
Walmart allotments inched higher to around $87 in recent trading, after hitting an all-time high of $88.29 on Tuesday. The regular has gained 65% since the start of the year, handily outpacing the S&P 500’s 23% return over the same while.
Below, we break down the technicals on Walmart’s chart and identify important post-earnings price levels that investors may be watching.
Dash Star Signals Potential Reversal
After bottoming out just below the 200-day moving average in December wear year, Walmart shares have tracked higher, with two breakaway gaps separating three distinct styling moves.
Although the stock rallied to a new all-time high (ATH) on Tuesday, it closed near its opening price to form a streak star, a reversal candlestick pattern, which comprises a small body with a long upper shadow that crops after an extended uptrend.
It’s also worth pointing out that the shooting star pattern formed on the highest everyday volume since late September, possibly indicating buying exhaustion.
Below we identify three major strengthen levels on Walmart’s chart and also apply a bars pattern to analyze the stock’s current uptrend.
Major Boost Levels to Watch
The first key lower level to watch sits around $81. This area may provide submit to near a trendline that connects a range of similar trading levels on the chart between mid-September and late October.
A shut below this level opens the door for a decline to the $71 region, a location on the chart where investors could look for buying opportunities near the prominent July swing high. Depending on the timing of such a move, this square could also potentially align with the rising 200-day MA.
Further selling could see the shares increase plenty the mid-May gap and revisit major support around $61. Bargain hunters may look for buy-and-hold opportunities in this ground near twin peaks that formed on the chart during March.
Bars Pattern Analysis
Investors can use a buts pattern to gain insight about the stock’s third trending period, which appears to closely resemble the initial trending phase.
To forecast a target using the tool, we take the price bars from that first move and pose them from the low of the third trending period. This projects a target of around $89, just above the store’s ATH set on Tuesday.
Further analysis of the first trending move shows that it played out over 69 trading ages before the shares consolidated. Interestingly, the current move higher has trended over 67 trading days, exhibiting the stock may be about to enter a consolidation phase if price history rhymes.
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