Walmart Makes a Lower HighWalmart rallied for more than a year, but some traders may see risk of a deeper pullback.
The first pattern on today’s chart is the rising trendline along the lows of August and January. WMT dropped under that support last month and began March turning it into resistance.
Second, prices have breached the 50-day moving average. That may suggest its intermediate-term uptrend is ending.
Third, the 8-day exponential moving average (EMA) has crossed under the 21-day EMA. MACD is also falling. Both of those may signal short-term bearishness.
Fourth, the recent peak occurred at a 50 percent retracement of the initial drop. That may also confirm direction is pointing lower.
Finally, the overall price action may be viewed as the start of an A-B-C correction. Such a pattern could potentially include a push to a lower low. Traders may also eye levels around $85, near a price gap from November 19.
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