Walmart's Stock Sees Strong Battle Between Bulls And Bears Right Now: What's Next?

Walmart Inc. WMT shares are trading higher Thursday after the company reported fourth-quarter earnings.

Walmart reported earnings of $1.53 per share, beating the analyst consensus of $1.50. The company reported sales of $152.87 billion, beating the consensus of $151.54 billion.

Walmart was up 2.3% at $136.62 at time of publication.

See Also: Walmart Shares Pop On Q4 Earnings Beat; Hikes Dividend

Walmart Daily Chart Analysis

• Shares are hanging right below the higher low trendline and are looking as though they could see a break below the level. The stock is having a green day, pushing the stock back toward the trendline.
• If the stock can recover, it may see a breakout over the $150 resistance level in the coming weeks.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This shows recent bearish trading sentiment, and each of these moving averages may act as an area of resistance in the future.
• The Relative Strength Index (RSI) jumped higher today and now sits at 43. This shows the stock is seeing some more buyers enter the market although there still remain more sellers overall. The stock has seen a longer-term downward trend on the RSI; if it continues, the stock could see more selling pressure and cause a push downward in price.

What’s Next For Walmart?

Walmart is sitting near the key trendline and is looking to bounce and recover the support.

Bulls want the stock to recover the trendline and then go on to break above the $150 resistance level. A period of consolidation above this level may signal the stock is getting ready for a further bullish move.

Bearish traders want the stock to hold below the higher low trendline, which may help bring more sellers into the market. Bears also want the stock to continue to hold below the moving averages.