Walmart Holds Strong and Ends the Week Up More Than 15%Shares of retail giant Walmart have risen more than 15% over the past five trading sessions, despite growing tensions over reciprocal tariffs between China and the United States. The bullish bias has remained intact, primarily because the company stated this week that it is prepared for scenarios with tariffs of up to 125% on Chinese imports and is currently negotiating with suppliers to secure better pricing in the coming weeks. This has helped preserve investor confidence and positioned Walmart as one of the few stocks that has withstood the volatility of the renewed trade war.
Building Bullish Momentum
This week’s price action showed a sustained upward bias, suggesting the beginning of a new short-term bullish trend. However, Walmart's stock still faces resistance from a key Fibonacci retracement level, which it must overcome to confirm a strong buying momentum and possibly maintain a bullish trend in the coming weeks.
MACD Indicator
The MACD currently favors the bulls, as the histogram has expanded significantly, reinforcing the upward momentum above the zero line in the short term. As long as no divergence emerges between price action and the MACD, there’s little room for meaningful selling corrections in the immediate sessions.
ADX Indicator
The ADX line is beginning to show some indecision, as it gradually descends toward the neutral 20 level, just as the price approaches key resistance zones. If this downward trend continues, the market could shift into a more neutral phase. However, for now, the indicator still supports the idea that the recent upward moves reflect a solid directional bias.
Key Levels to Watch:
$95: Likely the most important nearby resistance, aligning with the 61.8% Fibonacci retracement level. A decisive move above this area could open the door to a stronger bullish phase.
$104: A long-term resistance, representing the recent highs reached in the past few months. A return to this level could revive the broader bullish trend that had been dominant in the past months.
$85: A key support level, aligned with the 200-period moving average. If price retraces back to this level, it could reactivate the bearish bias seen in previous weeks.
By Julian Pineda, CFA – Market Analyst
