Walmart Inc. Stock Breaks The Upside Line

by Darius Anucauskas
13:20, 2022/01/21

Looking at the technical picture of the Walmart Inc. stock (NYSE: WMT) on our 4-hour chart, we can see that yesterday, the share price fell below a short-term upside support line taken from the low of December 3^rd. At the same time, the stock managed to break below a key support area, between the 141.78 and 141.95 levels, marked by the lows of January 4^th and 19^th respectively. What’s more, WMT is running below a short-term tentative downside resistance line drawn from the high of January 14^th. Therefore, as long as the stock remains below that downside line, we will aim lower.

A further push south might bring the share price to the 140.85 obstacle, or to the 140.14 zone, marked by the high of December 23^rd, where a temporary hold-up might occur. We may even see rebound from that zone, however, if WMT struggles to overcome the aforementioned downside line, another slide could be possible. If this time the stock overcomes the 140.14 area, this would confirm a forthcoming lower low, possibly clearing the way towards the low of December 23^rd, at 138.86, or to the 137.88 level, marked by the low of December 20^th.

Both the RSI and the MACD are pointing lower. The RSI is below 50 and the MACD had recently dropped below zero and remains below the trigger line. The two oscillators show negative price momentum, which supports the above-mentioned scenario.

Alternatively, if the stock jumps back above the previously discussed downside line and also rises above the 143.92 hurdle, marked by an intraday swing high of January 20^th, that could attract a few more buyers into the arena. WMT might travel to the 144.98 obstacle, or to the 146.61 zone, which is the current highest point of January, where a temporary hold-up might occur. If the buying doesn’t stop there, the next potential target could be at 147.86, marked by the high of November 26^th.

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