Walmart Hangs Near Resistance: What Does This Means For The Stock?

Walmart Inc WMT shares gapped higher Monday morning, but have since fallen lower. Shares gapped higher after The Public Investment Fund, Saudi Arabia's sovereign wealth fund, added more shares of Walmart to its fund.

Walmart was down 0.60% at $146.91 Monday afternoon at publication.

Walmart Daily Chart Analysis

• The stock recently was rejected at resistance and unable to break above the level in what technical traders call an ascending triangle pattern.
• The $150 price level is an area where the stock has struggled to cross above in the past, while the stock has been able to find support near the higher low trendline.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock is likely bullish.
• Each of these moving averages may hold as a potential area of support in the future.
• The Relative Strength Index (RSI) has been falling lower the past few days and now sits at 49. This shows buying and selling pressure is relatively equal, but with slightly higher selling pressure.

What’s Next For Walmart?

Bulls are looking to see the stock make a bounce and try to break above the resistance level once again. If resistance can be broken, bulls are looking to see the level begin to hold as support, the stock could see a strong bullish push higher in time.

Bears are looking to see the stock continue to fade lower toward the higher low trendline. A break below this trendline could signal that the stock is ready to see a new bearish trend and see a period of lower highs.

Photo: Courtesy Walmart