WMT Walmart: Has an Important Top Formed?The price may have formed a major top in Circle Wave 3 in the white scenario, which suggests a potential move toward the $20 area as part of a larger Circle Wave 4. For now, the assumption is that a substantial top has been struck, but whether this marks the end of Wave 3 (yellow scenario) or a broader corrective phase remains to be seen.
Key Levels and Scenarios:
In the yellow scenario, the market should be moving toward the support area between $45.60 and $62.87. A strong, impulsive rally from this zone could indicate one final Wave 5 push higher before a major third-wave top is confirmed.
In the white scenario, if the rally from support turns out to be corrective, it may just be forming a white B wave, reinforcing the outlook for lower prices in a prolonged correction.
Current Focus:
The market is currently moving downward in Circle Wave A toward the orange support area.
Since A waves can unfold in either three or five waves, it is important to monitor whether this decline remains impulsive or corrective.
As long as the price remains below the March high (~$105 on smaller time frames), the focus remains on lower prices.
For now, the priority is to closely observe the microstructure as the move down develops, to determine whether the yellow or white scenario plays out.
