Ahead Of Walmart Q4 Earnings, Here Are Crucial Stock Levels Expected By Wall Street This Week

Walmart Inc WMT is set to announce fourth-quarter earnings on Tuesday. Analysts are expecting the retail giant to report revenue of $159.72 billion for the quarter with earnings per share of $1.51, according to CNBC.

The stock has gained just under 2% since the beginning of the year and is up only over 8% in the last six months. Despite such low volatility, the options market is reflecting a relatively wider range for the stock this week.

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Resistance: According to Walmart options expiring this Friday, the maximum open interest on the Call side is concentrated on the $150 and $155 levels. The stock closed at $146.44 on Friday. This indicates the market is considering a short-term resistance at the $150 level. If this level gets breached, the $155 level comes in as the next resistance.

Support: On the downside, the $142 Put strike has a significant accumulation of open interest, indicating the level as a short-term support for the week.

The support and resistance level as reflected by the options market indicates professional traders are anticipating the stock movement following the earnings announcement to be limited to 3% on either side.

Since mid-December, the stock has moved in the range between $138 and $148. The stock will have to breach either of these levels to witness a significant movement.

It is noteworthy that open interest levels only provide a fair idea of market expectations of support and resistance. The levels could change if the stock moves significantly on the back of strong macro or corporate news.

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