Walmart ($WMT) Daily: In my last post, we saw that $WMT was on the last Elliot Wave pattern, Wave 5 of a Five month run up, and I stated that, “although it may extend this gain to $82-ish price, investors and traders should be wary that in the last Wave, this projection can be cut short”.
And it turns out that Wave 5 was indeed cut short, and Walmart seems to be beginning a corrective wave, which may or may not turn in to a motive wave – and a longer bearish move; it’s too early to tell at this point. We see in the daily chart below that the stock slashed below its 50 day moving average, and since have retraced about 50% of the drop, but remains under that moving average resistance. MACD is trying to make a turn to the upside, but i think it’s still got some ways to go. We need to be wary of a possible bearish flag forming here, which can lend the stock to further drops to the $73 support level as indicated in a red line in the chart. Technicals on the weekly chart continues to roll over, so caution is recommended here before deciding to go long on the stock.
And it turns out that Wave 5 was indeed cut short, and Walmart seems to be beginning a corrective wave, which may or may not turn in to a motive wave – and a longer bearish move; it’s too early to tell at this point. We see in the daily chart below that the stock slashed below its 50 day moving average, and since have retraced about 50% of the drop, but remains under that moving average resistance. MACD is trying to make a turn to the upside, but i think it’s still got some ways to go. We need to be wary of a possible bearish flag forming here, which can lend the stock to further drops to the $73 support level as indicated in a red line in the chart. Technicals on the weekly chart continues to roll over, so caution is recommended here before deciding to go long on the stock.