This morning Jim Cramer looked ahead to some of the companies reporting earnings this week. Today we heard from Walmart (WMT) , which is holding their analyst day. Cramer was bullish on the company. WMT reported GAAP EPS of $1.45 which beat expectations by $0.02. Revenue came in at $141.7 billion, in-line with estimates. The stock was higher in early afternoon trading.
In this daily bar chart of WMT, below, we can see that prices have been in an uptrend the past 12 months (no rollback of prices with the stock price). WMT tested the rising 200-day moving average line last month and that looks like a buying opportunity in hindsight.
The daily On-Balance-Volume (OBV) line shows a rise to October and then a sideways pattern. The OBV line is close to a new high for the move up and that would go a long way to confirming the price gains this month.
The Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal last month and it is close to crossing the zero line this month in what will likely be a new go long signal.
In this weekly bar chart of WMT, below, we can see that prices have been in an uptrend for the past three years. They haven't performed like a cloud stock but they have done pretty well for investors. WMT is above the rising 40-week moving average line which was successfully tested.
The weekly OBV line is neutral but turning to the upside. The MACD oscillator is in a take profits sell mode but probably narrowing towards a new buy signal.
In this first Point and Figure chart of WMT, below, we can see that the software is projecting a tentative downside price target in the $105-$104 area.
In this second Point and Figure chart of WMT, below, we used weekly close only price data to construct the chart. Here a potential longer-term price target of $154 is being projected.
Bottom line strategy: It generally pays to stay with the trend in force and to focus more on closing prices than opening prices. WMT is in an uptrend with bullish indicators and higher price targets. Continue to trade from the long side. Risk a close below $112 and look for longer-term gains to the $150-$155 area.
