Chart of the Week: Walmart
Today we are talking about the big retailer Walmart; WMT is the symbol there. So let’s take a look at the chart.
Going back to the late part of summer, you can see the stock has been floating around between the $155-165 area – mostly in bullish territory. And you can see the candles have been mostly teal or light blue on the go-no-go indicator, which tells us mostly bullish.
But we did come down a bit in the early part of October, tested the support near this 200 day moving average in the middle of the week of October 3, and came back and have been making a series of higher lows and higher highs on the way. And you can see the chart shows this line here shows the higher highs and higher lows.
The parabolic SAR system – stop and reverse – which is the dots over here, is bullish.
Now the current color of the go-no-go indicator is teal, which is cautiously bullish. And I think if we get above the resistance here from last week, which is about $164, we have some clear skies ahead. Earnings coming out on Walmart over the next couple of weeks.
Taking a look at the indicators below, MACD fired on a buy signal around October 15. It’s still on a buy signal here.
We are looking at a couple of different indicators here this time. The momentum indicator called the Rate of Change (ROC), which has been making higher highs and higher lows. It pulled back a little bit but it still has really good strong momentum. This reflects the price of the stock currently versus a period in the past. I have this set at nine days; it moves really quickly. Walmart has got some really good momentum as long as the indicator stays above zero, which it is right now.
Finally, the accumulation distribution oscillator is flashing still a bullish sign. This basically tells us where the big money is flowing. When the indicator is above zero, it means big institutions are buying this stock. It’s been up there for a while. It’s slightly above zero now; it’s kind of flattened out a little bit as the stock flattened out last week. We did pull back a little bit and rallied back on Monday. We are looking to see a little bit more upside later on this week.
One more chart I want to show you with Walmart, and you can see here more of a condensed version of what I just showed you. You can see from back in the summer we see the series of higher lows in the chart, nice uptrend here.
Also, this channel has pretty much been created here with higher highs. So we’re a little bit below the midpoint of this channel. To the top end of the channel would probably take you up to $175-180. That could take a little while to get there. Of course we have earnings coming up and that could be a catalyst too.
Nice strength in RSI here with higher lows, too. And as I mentioned on the other chart, MACD is also on a buy signal.
So take a look at Walmart!
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