Walmart Inc. (WMT) has retreated with the broad market decline this month but it is currently holding a key support area. Can prices continue to hold and do better into the year-end? Let's see if this will be in line with the indicators.
In this daily bar chart of WMT, below, we can see that prices began an advance in June rallying from $82 to $106 or $24. The pullback/correction this month was from $106 to $94 or $12 - fifty percent or half of the rally. Traders often look to buy 50% retracements so it should not be a big surprise to see this work in real time. We can see from the chart that the $94 level was acting as support from late August into early October - again it is not unusual to see a previous support area continue to act as support. Prices are below the flat 50-day moving average line and above the still declining 200-day line. The daily On-Balance-Volume (OBV) line declined this month as sellers became more aggressive. If the line turns up again it will be a positive for the chart. In the lower panel is the Moving Average Convergence Divergence (MACD) oscillator which is just above the zero line.
In this weekly bar chart of WMT, below, we can see that prices are above the declining 40-week moving average line. The weekly OBV line shows a small decline this month within a longer-term rise. The weekly MACD oscillator is above the zero line in positive territory but it has narrowed towards a possible crossover.
In this Point and Figure chart of WMT, below, we can see that the $93.61 level has held three times. An upside price target of $129.17 is being projected.
Bottom line strategy: I look for the support on WMT to hold and for prices to eventually work higher again.