by Shane Ormond
On Jan 21, 2020
Now that the Chinese factory is complete (and just in time for a deadly virus outbreak), self-proclaimed “Buff Mage” Elon Musk is turning his attention to Germany, where colonies of bats and unexploded World War II bombs threaten to undermine investor confidence. (Those are not metaphors.)
Yesterday, we looked at a chart of Apple, Inc., and noted that the stock had been making a series of higher highs and higher lows for a year now.
Today’s Chart of the Day is for Walmart Inc. (NYSE: WMT).
Now, below is a 10-month Simple Moving Average chart.
Back in August 2018, the WMT 1-month moving-average line crossed above the 10-month simple moving-average (SMA) indicating WMT is on a PowerTrend ‘buy’ signal (circled).
And guess what happened next…
Sure enough, Walmart prices continued to climb.
If you had purchased shares of WMT when the ‘buy’ was signalled for the stock back in August 2018, at around $95.80, you’d be up 24.3% by now.
Not a bad profit, for a little-over-a-year-hold of a major retailer.
Now, as you can see, the 1-month moving-average is still above the 10-month SMA. That means the bullish trend is still in play!
As long as the 1-month Price remains above the 10-month SMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
We’ll continue to pay attention to WMT as it trends upward, so we’ll know the moment market conditions shift and the stock trends downward.
Editor, Chart Of The Day