BZ Chart Of The Day: Is It Time To Buy Walmart?

Sometimes a market can have a memory. This is why it may be time to buy Walmart Inc WMT.

In financial markets, certain price levels are more important than others. These are called support and resistance levels. The concept of market memory refers to how these levels can retain their importance for a long period of time.

At support levels, there is more demand for shares than there is supply. This is why selloffs tend to end when they reach them. And sometimes stocks even rebound after they get to support.

As you can see on the following chart, shares of WMT found support at around $118.50 in May and June. A rebound followed each time. If the market remembers this, the stock may be poised to move higher once again.

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Photo: Ralf Liebhold via Shutterstock