WMT closes above its opening price after recovering from early selling pressure
Walmart Inc. (WMT) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, WMT ended the week 1.24% higher at 117.89 after gaining $0.45 (0.38%) today, slightly outperforming the Dow Indu. (-0.09%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 117.89 marks the highest recorded closing price since January 2nd. Trading up to $0.52 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 7th, WMT actually lost -1.03% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (WMT as at Feb 14, 2020):
Friday's trading range has been $1.42 (1.21%), that's slightly below the last trading month's daily average range of $1.56. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WMT.
Two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
Walmart managed to close above the 50-day moving average at 117.48 for the first time since December 30, 2019. After spiking up to 118.57 during the day, the share found resistance at the 100-day moving average at 118.18.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 115.86.
The market shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's high at 119.89, upside momentum might speed up should WMT be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for Walmart. Out of 24 times, WMT closed higher 66.67% 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 62.50% with an average market move of 0.95%.