Based on good technical signals, WALMART INC is potentially setting up for a breakout.

Our stock screener has detected a potential breakout setup on WALMART INC (NYSE:WMT). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:WMT.

Technical analysis of NYSE:WMT

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, WMT scores 8 out of 10 in our technical rating. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, WMT did better than 86% of all other stocks. On top of that, WMT also shows a nice and consistent pattern of rising prices.
• WMT is one of the better performing stocks in the Consumer Staples Distribution & Retail industry, it outperforms 87% of 41 stocks in the same industry.
• WMT is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so WMT is performing more or less in line with the market.
• In the last month WMT has a been trading in the 66.67 - 71.33 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

For an up to date full technical analysis you can check the technical report of WMT

How does the Setup look for NYSE:WMT

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:WMT exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, WMT also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 70.75. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 68.54, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for WMT in the last couple of days, which is a good sign.

How can NYSE:WMT be traded?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Of course, there are many ways to trade or not trade NYSE:WMT and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.