Walmart Inc. ( WMT) reported earnings Tuesday before the opening. Prices dipped early but have since recovered and now trade higher on the day. Let's check and see what this could mean for the charts and indicators.
In this daily bar chart of WMT, below, I can see that shares of WMT broke below Friday's low and broke above Friday's high to make an "outside day."
Outside days break the high/low range of the prior day and can mark turning points. Futures traders are more sensitive to outside days than equity traders. Prices are above the 50-day and 200-day moving average lines. The On-Balance-Volume (OBV) line shows a rise from late May and is turning upward now. A rising OBV line tells me that buyers of WMT are more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is ready to cross above the zero-line for an outright buy signal.
In this weekly Japanese candlestick chart of WMT, below, I see a positive-looking picture. Prices are trading above the 40-week moving average line but the line has a negative slope. The weekly OBV line is up from an early October low and pointed higher. The MACD oscillator is bullish.
In this daily Point and Figure chart of WMT, below, I can see a potential upside price target in the $166 area.
In this weekly Point and Figure chart of WMT, below, I can see a downside price target in the $97 area. A weekly trade at $156 should refresh the uptrend.
Bottom line strategy: Traders could probe the long side of WMT at current levels but they should only risk to $139. The $166 area is my price target using the Point and Figure chart.
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The charts of this fund are giving off a positive glow.
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