Walmart Is Now Finding More Reasons to Turn Lower

 | Jul 18, 2017 | 3:40 PM EDT
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Just a few days ago we discussed Walmart Stores Inc. (WMT) and said that the charts offered mixed technical signals. In the intervening days WMT has stalled under the cresting 50-day moving average line.

Similar to trend lines, a moving average line can act as support or resistance. WMT has stalled at the underside of the 50-day line and the highs made in the second half of June. Volume has not expanded in recent sessions, suggesting that buyers are not willing to push prices up much higher.

In this daily bar chart of WMT, above, we can also see that prices have closed off their best levels the past few sessions. If buyers of WMT were aggressive we should be seeing prices close near the highs of the day. The daily On-Balance-Volume (OBV) line jumps around a lot but is still down from its early June highs. The Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts signal.

In this weekly bar chart of WMT, above, we find little change -- prices are above the rising 40-week moving average line. The MACD oscillator is in a take profits sell mode and the weekly OBV line is not showing much strength.

In this Point and Figure chart of WMT, above, we can see our short-term parameters are that $77.49 is more positive and a decline to $73.00 would be more negative.

Bottom line: WMT is looking more vulnerable than a few days ago. A close below $76 could start a fresh decline.

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