Over the weekend, there were widespread reports of high demand at big-box retailers such as Walmart (WMT) and Costco (COST) in response to the threat from COVID-19. Walmart closed Monday’s session up 7.62% and Costco closed up 9.96%. Let’s see what the charts tell us.
Walmart (WMT) Weekly Chart – annotations by askSlim.com
At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.
askSlim.com Technical Briefing: The weekly cycle analysis suggests that WMT is in a neutral-to-positive intermediate-term pattern. Weekly momentum is negative.
On the upside, there is an intermediate-term Fibonacci extension zone from 119.70 – 123.20. On the downside, there an intermediate-term Fibonacci support at 109.24 followed by cycle low support at 104.37. Our analysis suggests that for the bears to regain control of the intermediate-term, we would likely need to see a weekly close below cycle low support at 104.37.
askSlim.com Sum of the Evidence: WMT has a neutral-to-positive weekly cycle pattern with negative momentum. Under these conditions, we would expect the stock to trade in a range in the near-term. There is a likelihood the stock tests the intermediate-term Fibonacci extension zone beginning at 119.70 by April.
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