Walmart (NYSE:WMT) Long Term Technical Analysis February 2017

WMT Long-term outlook


It is a cloudy month for WMT as the stock price move down in January, though the stock price moves up in the first half of February. The company still face a lot of difficulties, but hope grows in the e-commerce sector. Walmart has known to acquire online retailers in its effort to enter e-commerce business.

Profit from conventional sales will take a hit while online sales trend is growing. There is not much to expect from the profit side of WMT in short-term. If the company manage to chunk part in the online market, it will start showing positive profitability.

Click here to see WMT January analysis

New Month

Monthly chart

Lower close in the monthly chart show WMT temporary setback. The setback might not hold for long as the company shift toward online sales. If the price manages to close above $70 handle, it should see further upward movement in its shares prices.

Weekly chart

The weekly chart shows a bearish sign with the price moving below the red trend line. The break below blue and yellow trendline put the price under the bearish scenario. Fortunately, in the first half of February, WMT stage a rally which put it near the red trendline. If the price manages to close above it and also the resistance $70, we will see the start of the bullish leg.

Daily chart

The bear dominates WMT in the daily chart as the price move lower past $67. Fortunately, WMT found support at $65 and bounce upward back above $67. Currently, the price is near both averages and bearish trendline. $70 is the important level where there is an intersection between trendline and SMA 200.

Similar to its longer term chart, WMT needs a close above $70 before it can overturn the trend from bearish to bullish.

Trade plan

The long position could be taken when $70 broken upside and the price make a successful re-test on it.

The short position could be taken from $70 or the daily averages.

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