Walmart (WMT): Favorable Conditions To Resume 2015 Advance

Conclusion, Investment Implications, Strategy

Walmart (WMT) is amid favorable conditions to resume its 2015 advance. A sustained rise above this week’s lows would help confirm this and target an additional 11% rise to $113.00 per share. This is an Asbury Momentum idea.

Analysis and Rationale

Walmart Inc.(WMT) engages in the retail and wholesale operations in various formats worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam’s Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, drugstores, and convenience stores; membership-only warehouse clubs; e-commerce Websites, such as walmart.com, jet.com, shoes.com, and samsclub.com; and mobile commerce applications. It operates approximately 11,300 stores and various e-commerce Websites under the 58 banners in 27 countries. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.

Chart 1 below plots WMT weekly since late 2015. The chart shows that WMT is currently testing, and appears to be rebounding from, this week’s test of major support at its 200-day moving average– currently situated at $112.88. Not shown is that this emerging rebound from support is taking place amid favorable near term tactical metrics. A sustained rise from this week’s lows would help confirm this and target an additional 11% rise to $130.00 per share, which was our original upside target when WMT first resumed its larger late 2015 advance in early July 2019.

Chart 1

Table 1 below shows that, considering the aforementioned upside target and a protective stop placed below the $112.68 area, a long entry price of $116.80 would provide a 1:3.2 risk/reward ratio (risking $1.00 to make $3.20) with an initial risk of 3.5%.

Table 1

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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.

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Walmart (WMT): Favorable Conditions To Resume 2015 Advance

Conclusion, Investment Implications, Strategy

Analysis and Rationale

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Walmart (WMT): Favorable Conditions To Resume 2015 Advance

Conclusion, Investment Implications, Strategy

Analysis and Rationale

Asbury Research

Asbury Research subscribers get more detail on our latest analysis, and updates to our quantitative models

Schedule A 15-Minute Zoom Meeting With Us To Get More Information >>>

Asbury Research subscribers get more detail on our latest analysis,
and updates to our quantitative models