Pullback is due.On a phone call the day after Christmas, someone asked me what I thought about Walmart as a stock to buy for someone as a Christmas gift. After reviewing the chart and seeing the inflationary deviation upward, from it's normal upward and healthy bullish trend that looks like a rocket launch, upward at high rates of speed through the top of the bullish trend channel, i said this would not be the time to buy.
Just because something reaches new all time highs, does not mean it won't go higher. That factor is really irrelevant because the bearish monthly wick says it all. It's time for a pullback.
What the federal reserve says and does it very relevant to this particular stock being discussed.
Changes in the inflationary forecast matter. These are the very changes that caused the bullish distortion in price, and when they re-adjust, so to will the price.
It's very clear a pullback is due and now we will watch the market determine what it thinks the new fair price of Walmart to be in this new "lesser inflation" economy.
So to answer the question, now was not the time to buy but when (and if) the pullback is healthy and resumes it's normal upward trend in the long term trend channel I'd back up the truck and pull the trigger if it met all of my BUY criteria in the technicals.
For now, this is not the exact time to be buying. It's time to be watching what price does at former support and resistance levels for signs of a healthier return.
This chart was made quickly and not with much thought put into the artistic visuals, but many of you already know what I mean. As soon as you see that teetering top, you know a tumble is here. Today, I got a call of thanks, as they watched the claw back in price begin.
It was not investment advice, just pattern recognition opinion. (lol)
