The big box retailer has a trendline starting at the March lows, which was tested in early July and late October. It’s now returned to consolidate at that line.
WMT’s 50-day ( ) has also been rising and follows the trendline.
Next, its recent consolidation zone around $145-146 is near the mid-October high. That could mean old resistance is becoming new support.
Finally, stochastics show an oversold condition.
The fundamental picture is also strong, with top- and bottom-line beats the last two quarters. Its digital transformation has been successful. Now brick-and-mortar sales could enjoy a boost if vaccinations drive traffic back into stores.
Overall, WMT is a large cap and major index member – exactly the kind of stock investors have shunned recently in favor of smaller names and IPOs . However, a sense of risk may be spreading in the market as coronavirus rebounds. The result could be a return to the big and safe names like the retail giant based in Bentonville, Arkansas.
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