Walmart shares (WMT) have gained 14% since the beginning of the month. At the moment, the emitter’s quotes are trading at a discount of 2.2% to a new 52-week high of April 20. The WMT announced the publication of financial results for Q1 on May 19. Wall Street predicts an increase in earnings per share by 2.65% (YoY) to USD 1.16 with revenue growth of 3.79% (YoY) to USD 128.6 billion.
During the previous week, Walmart’s shares dropped by 2.03%. S&P500 index went down by 1.36% during the same period.
American investors are focused on the possibility of a partial opening of the American economy. Several US states, including Colorado, Mississippi, Minnesota, Montana, and Tennessee, may ease social restrictions this week. Shops may open, which should support trade. Yesterday, the governor of New York, Andrew Cuomo, said that the phased opening of the economy could begin on May 15, and the construction and manufacturing business would be the first to resume work. The gradual easing of restrictions in the world’s leading economies is encouraging investors hoping for an early recovery in global demand and production.
Oil prices are correcting downwards. Investors continue to wait for the implementation of a new OPEC+ agreement to reduce production by 9.7 million barrels per day. But until this happens, oil storage facilities continue to fill up rapidly, which will soon lead to their shortage. The US continues to reduce the number of active oil rigs. Over the past week, their number has decreased from 438 to 378 units. Decreased production by American shale oil producers may support prices but so far the market situation remains difficult.
WMT Support and Resistance
Walmart stock shows a steady uptrend. #WMT quotes have breakthrough key extremes and consolidated above them. Currently, the company’s shares are consolidating within the range of 126.50–132.50. WMT has the potential to further growth.
Indicators show opposing signals: the price has consolidated above MA(50) and MA(200), and MACD histogram started to decrease. Positions are to be opened from key levels.
Resistance levels: 132.50.
Support levels: 126.50, 120.00, 117.00.
If the price consolidates above the resistance level of 132.50, further growth of #WMT quotes is possible. Potential profits should be locked in by orders at 137.50, 142.00, and 146.00. Stop-loss – 127.50.If the price consolidates below 126.50, one may consider selling #WMT. The moving potential is aimed at the area of 117.00–113.00. Stop loss – 131.50. Implementation period: 3 days.