Walmart stood strong when the market crashed. Is it time to buy? | Don’t ignore this chart!

By midday Tuesday, all three U.S. indexes had fallen sharply as the hotter-than-expected CPI inflation report turned red.

What’s interesting about a day like this is new all-time high Scan (using StockCharts’ scan engine) to see which stocks are bucking the trend (even briefly) amidst severe downturns.

StockCharts scan engine helps you narrow down stocks and ETFs that match your specific needs. It includes many predefined scans that are a good starting point. Once you become familiar with these scans, you can adjust them or create new scans that fit your trading goals.

Try StockCharts Sample Scan Library (Charts & Tools > Sample Scan Library)

Of the 37 stocks that rose or continued to rise for most of the trading day, one of the most recognizable names was (drum roll…) Walmart (WMT).

What drives purchases at Walmart?

Maybe it’s the 3-for-1 stock split scheduled for February 26th. Or maybe it’s simpler than that. Among other things, it’s dominance as the world’s largest retailer of essentials and discretionary items, consistent sales growth, and a stable dividend yield. Additionally, Walmart is scheduled to report earnings on February 20th before the markets open, and perhaps the gains over the past two months reflect optimism about the upcoming report.

In any case, while Walmart’s stock price is rising, the overall market is falling pretty hard. Investors who are currently bullish on Walmart stock are looking for an entry point, a possible pullback, or both. Well, let’s give it a try.

Walmart Stock: Is Momentum Strengthening or Weakening?

Chart 1. Walmart’s weekly chart. WMT prices rose due to reduced momentum and weaker relative performance compared to the sector. The SCTR score is also around 50, which doesn’t make WMT a technically strong stock.Chart source: StockCharts.com. For educational purposes.

Despite volatility, a wide range of time frames (2021), and a few significant declines, Walmart stock’s net upward trend has remained relatively solid. Nonetheless, given the STCR score, which is well below the bullish 90 mark and hovering in the 56 range, the tech ranking is declining and warns of tech weakness despite Wal-Mart’s stock price rally.

In terms of Walmart’s performance compared to the Staples sector (using SPDR Consumer Staples Select Sector Fund XLP as a proxy), Walmart’s performance is 20%, down from 25% last October-November.

Walmart Stock: Downtrend and Setback

Chart 2. Walmart’s daily chart. Layering different indicators to find confluences of support and setting ranges rather than specific levels can be helpful when finding tricky entry points.Chart source: StockCharts.com. For educational purposes.

Walmart stock hit an all-time high Tuesday morning before succumbing to market forces and falling below yesterday’s closing price, signaling the start of a downward trend.

Looking at the Stochastic Oscillator, Walmart stock has been in overbought territory since late December. But it wasn’t until early February that buying pressure began to ease. Chaykin Money Flow But not to the point where CMF crosses below the zero line.

If you are bullish on WMT, here is your game plan.

• Set your price alert at approximately $165.25. This resistance level has been tested twice, but may be too high to be considered reliable support.
• If Walmart’s stock price is expected to reach and break this level, early buyers will start jumping in at $163, which coincides with the 38.2% Fibonacci retracement. line.
• Pay attention to Ichimoku Cloud. It is also planned to offer a wider range. scope of support (compared to a specific level of support)
• ideal entry dot (not a signal) is near Leading Span B, the lowest level of the Ichimoku cloud, between $158 and $160.75.
• weather gauge signal This will be a candle or series of candles reversing upward due to strong momentum and high volume.

conclusion

So what are we getting? With significant CPI-driven declines rocking all three U.S. indices, Walmart Inc. (WMT) was one of 37 notable outliers with its stock rising before succumbing to the market trend. StockCharts’ scan engine identified predefined WMTs. New all-time record injection. There are many reasons to be bullish on Walmart stock, but finding a favorable entry point requires some differentiation. We hope that layering the above indicators will help you come up with a basic entry strategy. This is especially true if you are bullish on WMT or looking to enter before or after the upcoming 3:1 split.

disclaimer: This blog is for educational purposes only and should not be construed as financial advice. You should not use any of our ideas and strategies without first evaluating your personal and financial situation or consulting a financial professional.