Walmart, Inc. (WMT) just reported its latest quarterly numbers Thursday morning. We looked at the chart and indicators of this retailer two days ago when the company announced how it was entering the next-day retail delivery battle. We said, "WMT has been pretty steady in recent days when other stocks have slumped -- this could mean it will can rally when stocks bounce. I like to buy strength and closes above $104 and $106 would tell me to go long WMT...."
WMT is trading higher in early Thursday so let's see if the charts look better now.
In the daily bar chart of WMT, below, we can see the activity through Wednesday's close. Right now I am imagining prices are trading around $102 putting WMT above the rising 50-day moving average line and only $2 away from what I would consider an upside breakout.
Heavy volume and a higher close Thursday will probably push up the On-Balance-Volume (OBV) line and we could see the Moving Average Convergence Divergence (MACD) oscillator narrow further.
In the weekly bar chart of WMT, below, we do not have much change from Tuesday except that prices are moving closer to their April highs.
In this Point and Figure chart plotted on the basis of the average true range (ATR) of WMT, below, we can see a long-term uptrend from 2009 and that trades at $105 and $106.50 will be a significant breakout. Again, $120 is the upside price target.
Bottom-line strategy: WMT is trading higher ahead of the NYSE opening Thursday. If prices can maintain those gains we could see an important breakout for WMT Thursday or Friday.