On Wednesday, we looked at the daily chart of ROKU and observed that it looked ready to move back to new highs.
For today’s chart of the day, we’re going to take a look at Walmart Inc. (WMT).
WMT needs no introduction — it’s the largest retail company in the world.
Recently, the company announced the new Walmart+ plan to take on online retail giant Amazon. A yearly fee can get you free 2-day shipping on orders over $35 as well as some other benefits, such as discounted gas.
I think they’re late to the party, but hey, we’re here to look at charts, not fundamentals!
The stock shot higher on the news, but quickly became overbought as it exited the upper Keltner Channel.
Profit taking came in, and price had a fast fall back, correcting almost as quickly as it advanced.
Let’s see where WMT stands currently on its daily chart:
When price action quickly goes back on the move that preceded it, it’s a caution sign. After moving below its midline, WMT came up for a retest underneath, and has since turned down again.
This does not mean WMT has entered into a downtrend — just that it is still digesting the pullback from the last push higher.
No trade signal here.
Analyst, Chart of the Day