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Technical Signals Point to a Possible Breakout for WALMART INC.

By Mill Chart

Last update: May 13, 2024

WALMART INC (NYSE:WMT) has been identified as a Technical Breakout Setup Pattern by our stock screener. This pattern typically occurs when a stock takes a pause after a significant rise, indicating the possibility of a continuation in the trend. While it's impossible to predict with certainty, it might be beneficial to monitor NYSE:WMT.

WMT Daily chart on 2024-05-13

Zooming in on the technicals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall WMT gets a technical rating of 7 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, WMT is only an average performer.

  • The long and short term trends are both positive. This is looking good!
  • 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.
  • When compared to the yearly performance of all other stocks, WMT outperforms 69% of them, which is more or less in line with the market.
  • WMT is an average performer in the Consumer Staples Distribution & Retail industry, it outperforms 69% of 40 stocks in the same industry.
  • In the last month WMT has a been trading in a tight range between 58.55 and 60.84.

Check the latest full technical report of WMT for a complete technical analysis.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NYSE:WMT is 8:

Besides having an excellent technical rating, WMT also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 60.88. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 60.14, a Stop Loss order could be placed below this zone.

Trading breakout setups.

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation 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.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.