Technical analysis: Will the Walmart stock price continue recovering?

Dmitry Lukashov IFC Markets

Walmart technical analysis summary

Buy Stop։ Above 126.15.

Stop Loss: Below 119.87.

Indicator	Signal
RSI	Neutral
MACD	Buy
Donchian Channel	Buy
MA(200)	Sell
Fractals	Buy
Parabolic SAR	Buy

Walmart chart analysis

The technical analysis of the Walmart stock price chart on daily timeframe shows #S-WMT,Daily is rebounding toward the 200-day moving average MA(200) after hitting two-year low eight weeks ago. We believe the bullish momentum will resume after the price breaches above the upper Donchian bound at 126.15. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the lower Donchian bound at 119.87. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic indicator signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (119.87) without reaching the order (126.15), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental analysis of stocks – Walmart

Walmart announced it will start charging suppliers pickup and fuel fees. Will the Walmart stock price continue recovering?

Walmart Inc is a United States based retail and wholesale giant which operates globally. Its market capitalization is $343 billion. The stock is trading at P/E ratio (Trailing Twelve Months) of 26.97 currently, company’s revenue (ttm) was $576.0 billion, while the Return on Equity (ttm) was 15.53% and the Return on Assets (ttm) at 6.31%. Walmart has announced it will charge some of its suppliers from next month new fees to transport goods to its warehouses and stores. A "collect pickup charge" calculated as a percentage of the cost of goods received and a fuel surcharge based on the cost of fuel to transport the goods will be charged to Walmart's "Valued Collect Suppliers." This May Walmart, the nation's largest retailer, cut its full-year profit outlook citing rising costs of labor and fuel with fuel costs, in particular, running over $160 million higher than it had anticipated.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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