Walmart Daily Chart.
Walmart (NYSE:WMT) is due to report earnings before tomorrow’s open.
The stock has been tracing out a very orderly consolidation since mid-November. At the November peak ,shares had gained 50% off the March lows. During the current 12-week bull flag, WMT has given back very little of the 2020 rally, while returning to oversold levels (daily MACD) that have marked important lows, including the March low.
We believe WMT is setting up well for an upside breakout. A close above $147.00 would pierce the upper band of the bull flag. This trendline links the last two monthly highs. On the downside, a close back below $143.00 would violate last week’s low indicating the consolidation will continue.
Note: We are long WMT in some managed accounts.
You can read Gary S. Morrow's original post here.
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