WMT Long-term outlook

Stay in cloudy outlook from fundamental side, the company struggling to up its competition against Amazon and other online marketplaces. Global sales increased but lagged behind Amazon, the partnership with JD.com has not able to breach Amazon huge moat of barrier on e-commerce. Fortunately, the pace of growth in Walmart online sales shown a positive trend which if continue might provide an advantage against Amazon.

WMT manage to escape sell-0ff in February and close higher after January sell-off. The share increase from $66.46 to $70.93 and provide bullish outlook as the company tried to revamp its operation and switch to the online platform.

Click here to see WMT February analysis

New Month

Monthly chart

The monthly chart of WMT initially shown potential bearish scenario, but fortunately for the bull, it closed back above $70 handle. The close above $70 handle put the share price back inside $70 – $75 range. Also, possible new floor establishes below the previous bullish candlestick.

There is red bearish trendline which traders need to watch, if the price closed back below it, the bearish scenario would be triggered again.

Weekly chart

The price manages to switch its position above the red bearish candlestick on the weekly chart. The switch is positive, but WMT is hanging near $70 support and could break lower anytime. If the price break lower, it will break below the trendline and continue the bearish trend.

On the upside, there is WSMA 200 which should hinder the price from upward movement.

Daily chart

It is now or never scenario for WMT bull. The price gapped above nearest resistance after better than expected earnings. The gap later filled in several days and it acts as a support level. The support level also accompanied by the horizontal line, daily SMA 100, and broken trendline. It is the time for the bull to buy WMT. Otherwise, it will move lower and back into long-term bearish trend.

Trade plan

The long position could be taken when $70 broken upside and the price make a successful re-test on it. (Previous month). The resistance already was broken, and traders could take a long position at $70.

The short position needs to wait for a break below $70 and bounce from it lower.