WMT closes above its opening price after recovering from early selling pressure
Walmart Inc. (WMT) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
WMT finished Thursday at 109.82 edging higher $0.42 (0.38%), notably underperforming the Dow Indu. (6.38%). Trading up to $2.55 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (WMT as at Mar 26, 2020):
Thursday's trading range has been $4.02 (3.67%), that's far below the last trading month's daily average range of $7.13. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for WMT.
After moving lower in the previous session, Walmart managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on March 16th, WMT gained 11.71% on the following trading day.
Prices are trading close to the key technical resistance level at 111.89 (R1).
While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
With prices trading close to this year's low at 102.00, downside momentum could accelerate should the stock break out to new lows for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Walmart. Out of 49 times, WMT closed higher 59.18% 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 67.35% with an average market move of 0.94%.