We are actively watching Walmart stock for a couple of reasons and think it is undervalued and could climb higher. In recent years, Amazon has taken a huge market share from Walmart. However, Walmart has pushed back with its online ordering system and free 2 day shipping that is winning back some customers. The second reason we are looking at Walmart is because of slowing economy. We think consumers will look to purchase more there than other stores if the economy slows. Lastly, Walmart shares show a correctional decline of 4.7% from the 52-week high of November 14, which they previously updated amid the publication of a strong report for Q3 of fiscal 2020. Adjusted earnings per share of USD 1.16 and comparable sales growth of 3.2% exceeded market expectations. However, revenue of USD 127.99 billion did not meet market expectations, but this was offset by an increase in online sales by 41% (YoY) and an increase in the forecast for the current fiscal year. During the previous week, Walmart shares dropped by 0.42%. S&P500 went up by 0.89% within the same period.
Walmart Stock Support and Resistance
The emitter’s quotes are still in lateral movement. No single direction tendencies are observed. The emitter is testing key levels of support and resistance at 117.00 and 121.00, respectively. In the near future, correction of the company’s shares after a protracted growth can not be excluded. Indicators don’t give a clear signal: the price has crossed MA(50); MACD histogram is located near the zero line. Positions are to be opened from key levels. Comparing company’s multiplier with its competitors like Amazon stock, we can say that #WMT shares are undervalued.
Support levels: 117.00, 115.00, 111.00.
Resistance levels: 121.00, 125.00.
Pivot Classic Fibonacci Camarilla Woodie DM
S3 103.91 112.21 116.81 106.69 —
S2 112.21 115.38 117.57 111.88 —
S1 115.65 117.34 118.33 115.00 118.08
P 120.52 120.52 120.52 120.19 121.73
R1 123.96 123.69 119.85 123.30 126.39
R2 128.82 125.65 120.61 128.49 —
R3 137.13 128.82 121.37 131.61 —
WMT Trading Ideas
If the price consolidates above the resistance level of 121.00, one may consider buying the company’s stock. Potential profits should be locked in by orders at 124.00, 127.00, and 129.00. Stop-loss –118.00. If the price consolidates below the level of 117.00, #WMT may correct. The moving potential is aimed at the area of 112.00–110.00. Stop-loss – 120.00.
Implementation period: 3 days.
WMT 1 Day Moving Averages
Exponential Moving Average (5) 118.90 Sell
Simple Moving Average (5) 118.90 Sell
Exponential Moving Average (10) 119.07 Sell
Simple Moving Average (10) 119.10 Sell
Exponential Moving Average (20) 119.13 Sell
Simple Moving Average (20) 119.45 Sell
Exponential Moving Average (30) 118.97 Sell
Simple Moving Average (30) 119.07 Sell
Exponential Moving Average (50) 118.29 Buy
Simple Moving Average (50) 118.89 Sell
Exponential Moving Average (100) 115.72 Buy
Simple Moving Average (100) 115.89 Buy
Exponential Moving Average (200) 110.75 Buy
Simple Moving Average (200) 109.44 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 121.11 Neutral
Volume Weighted Moving Average (20) 119.63 Sell
Hull Moving Average (9) 118.82 Sell
WMT 1 Day Oscillators
Relative Strength Index (14) 47.67 Neutral
Stochastic %K (14, 3, 3) 14.34 Neutral
Commodity Channel Index (20) −96.22 Neutral
Average Directional Index (14) 15.16 Neutral
Awesome Oscillator −0.29 Neutral
Momentum (10) −1.20 Sell
MACD Level (12, 26) 0.05 Sell
Stochastic RSI Fast (3, 3, 14, 14) 7.33 Neutral
Williams Percent Range (14) −87.91 Buy
Bull Bear Power −0.72 Buy
Ultimate Oscillator (7, 14, 28) 48.75 Neutral
