The question on everyone's mind: Will WALMART INC breakout?

Our stock screener has flagged WALMART INC (NYSE:WMT) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:WMT for potential movement.

What is the technical picture of NYSE:WMT telling us.

ChartMill employs a sophisticated system to assign a Technical Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to WMT. Both in the recent history as in the last year, WMT has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that WMT is one of the better performing stocks in the market, outperforming 83% of all stocks.
• WMT is one of the better performing stocks in the Consumer Staples Distribution & Retail industry, it outperforms 85% of 42 stocks in the same industry.
• WMT is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month WMT has a been trading in a tight range between 155.02 and 162.99.

For an up to date full technical analysis you can check the technical report of WMT

How do we evaluate the setup for NYSE:WMT?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:WMT this score is currently 9:

WMT has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 161.58. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 159.35, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:WMT be traded?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.