WMT breaks back above 200-day moving average
Walmart Inc. (WMT) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, WMT ended the month -3.45% lower at 119.78 after gaining $0.72 (0.6%) today, slightly underperforming the Dow Indu. (0.85%). Trading up to $0.68 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 119.68, Walmart confirmed its breakout through the previous session high after trading up to $0.45 above it intraday.
Daily Candlestick Chart (WMT as at Jun 30, 2020):
Tuesday's trading range has been $1.59 (1.33%), that's below the last trading month's daily average range of $1.97. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WMT. Prices continued to consolidate within a tight trading range between 118.02 and 121.12 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
The stock managed to close back above the 200-day moving average at 119.23. When this moving average was crossed above the last time on June 19th, WMT gained 1.53% on the following trading day. Prices are trading close to the key technical resistance level at 120.78 (R1).
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying might accelerate should prices move above the close-by swing high at 120.84 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 118.02 where further sell stops could get activated. As prices are trading close to June's low at 117.01, downside momentum might accelerate should WMT mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Walmart. Out of 780 times, WMT closed higher 53.72% 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 58.21% with an average market move of 0.52%.