WMT slips to lowest close since August 30, 2019
Walmart Inc. (WMT) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, WMT finished the week -0.51% lower at 114.37 after tanking $1.44 (-1.24%) today, underperforming the Dow Indu. (-0.58%). This is the biggest single-day loss in over two months. Today's close at 114.37 marks the lowest recorded closing price since August 30, 2019. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 115.04, the stock confirmed its breakout through the previous session low after trading up to $0.89 below it intraday.
Daily Candlestick Chart (WMT as at Jan 24, 2020):
Friday's trading range has been $1.88 (1.62%), that's far above the last trading month's daily average range of $1.21. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for WMT.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices broke below the key technical support level at 115.68 (now R1), which is likely to act as resistance going forward. The last time this happened on January 17th, WMT actually gained 0.55% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Walmart. Out of 292 times, WMT closed higher 58.22% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.22% with an average market move of 0.53%.