Walmart Inc. (WMT) is lower in price than it was one year ago but the charts are looking up for the next few months and new highs could be reached. Let's check out the charts and indicators for some guidance.
In this daily bar chart of WMT, below, we can see a mixed picture with our daily indicators. Since August the share price of WMT has moved in a wide sideways trend, crossing above and below the 50-day moving average line a number of times. In December WMT broke below the flat 200-day moving average line but quickly rallied back above it. WMT is above both moving averages and now the 200-day line has a positive slope. The daily On-Balance-Volume (OBV) line shows a decline from February but improvement from late December. If the OBV line can move above its November high it could be a sign that more aggressive buying has returned. The Moving Average Convergence Divergence (MACD) oscillator has crossed the zero line for an outright buy signal.
In this weekly bar chart of WMT, below, we see a more positive chart picture. Prices show a pattern of higher lows the past three years. A rally above $110 will refresh the uptrend. WMT is above the rising 40-week moving average line. The weekly OBV line shows a rise from early 2017 and the line is not far away from a new high which would be a bullish confirmation of the price action. The weekly MACD oscillator is poised to cross to the upside for a fresh outright buy signal.
In this Point and Figure chart of WMT, below, we can see that a trade at $106.54 would be a breakout. A bullish price target of $122 is being projected.
Bottom line strategy: in the past three months WMT has made an upside spike (November) and a downside spike (December) and now prices look like they have made up their mind to work higher. Hold longs or go long risking below $92 looking for gains to the low $120's in the next few months.
Jim Cramer discussed WMT on his latest Action Alerts PLUS conference call. Click here to access the call and learn more about AAP.