{"id":1006,"date":"2024-02-14T00:06:52","date_gmt":"2024-02-14T00:06:52","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/02\/14\/walmart-stood-strong-when-the-market-crumbled-time-to-buy\/"},"modified":"2024-02-14T00:06:52","modified_gmt":"2024-02-14T00:06:52","slug":"walmart-stood-strong-when-the-market-crumbled-time-to-buy","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/02\/14\/walmart-stood-strong-when-the-market-crumbled-time-to-buy\/","title":{"rendered":"Walmart Stood Strong When The Market Crumbled \u2013 Time To Buy?"},"content":{"rendered":"
\n

By midday Tuesday, all three US indices had taken a massive plunge as a hotter-than-expected CPI inflation report left awash in red.<\/p>\n

What\u2019s interesting on days like this is running a New All-Time High<\/em><\/a> scan (using StockCharts\u2019 scan engine) to see which stocks bucked the trend (even momentarily) amid such a significant downturn.<\/span><\/p>\n<\/p>\n

The StockCharts Scan Engine<\/a> is useful for narrowing down stocks and ETFs that match certain requirements. It comes with many predefined scans that are a good starting point. As you get the hang of these scans, you can adjust them or create new ones that align with your trading goals.<\/p>\n

Try out the StockCharts Sample Scan Library (Charts & Tools > Sample Scan Library)<\/strong><\/p>\n

Among the 37 stocks that either stayed afloat or floated higher for the bulk of the trading day, one of the most recognizable names is (drum roll\u2026) Walmart Inc. (WMT)<\/strong>.<\/p>\n

What\u2019s Driving the Walmart Buying Spree?<\/h2>\n

Maybe it\u2019s the 3-for-1 stock split set for February 26. Or maybe it\u2019s simpler than that\u2014its dominance as the world\u2019s largest retailer offering staples and discretionary items,\u00a0 consistent revenue growth, and reliable dividend yield, among other reasons. Also, Walmart is set to report earnings on February 20, before the market opens, and perhaps the upswing over the last two months reflects optimism toward the coming report.<\/p>\n

Whatever the case, Walmart\u2019s stock price is rising while the broader market is falling quite hard. Right now, investors bullish on Walmart stock are looking for an entry point, a possible dip, or both. So, let\u2019s have at it.<\/p>\n

Walmart Stock Price: Is Momentum Getting Stronger or Weaker?<\/h2>\n<\/p>\n

CHART 1. WEEKLY CHART OF WALMART. Note the rise in WMT\u2019s price against falling momentum and declining relative performance compared with its sector.\u00a0The SCTR score is also at around 50, which doesn\u2019t make WMT a technically strong stock.<\/span>Chart source: StockCharts.com. For educational purposes.<\/span><\/em><\/p>\n

Despite the volatility, a wide-ranging period (in 2021), and a few significant drops, Walmart stock\u2019s net uptrend has remained relatively solid. Still, judging from the STCR score, well below the bullish 90 line and hovering around the 56 range, its technical ranking is declining, warning of technical weakness despite Walmart\u2019s stock price rise.<\/p>\n

In terms of Walmart\u2019s performance relative to the Staples sector (using the SPDR Consumer Staples Select Sector Fund XLP as a proxy), Walmart\u2019s outperformance stands at 20%, down from 25% last October\u2013November.<\/p>\n

Walmart Stock Price: Bucked and Retreated<\/h2>\n<\/p>\n

CHART 2. DAILY CHART OF WALMART. Layering various indicators to find a confluence of support, establishing a range rather than specific levels, can be helpful when looking for a tricky entry.<\/span>Chart source: StockCharts.com. For educational purposes.<\/span><\/em><\/p>\n

After hitting an all-time high Tuesday morning, Walmart\u2019s stock price succumbed to market forces, falling below yesterday\u2019s open, signaling the beginning of a pullback.<\/p>\n

Looking at the Stochastic Oscillator<\/a>, Walmart stock has been hovering in overbought territory since the end of December. But it wasn\u2019t until early February that buying pressure began to recede, as shown in the <\/span>Chaikin Money Flow<\/a> indicator, but not to the point where the CMF crossed below the zero line.<\/span><\/p>\n

Here\u2019s one game plan if you\u2019re bullish on WMT:<\/p>\n<\/p>\n

Set a price alert at around $165.25, near a set of resistance levels that have been tested twice, yet may be too high to consider as reliable support.
\nOnce Walmart\u2019s stock price reaches and hopefully breaches this level, look for early buyers to begin jumping in at $163, coinciding with the 38.2% Fibonacci retracement<\/a> line.<\/span>
\nNote that an Ichimoku cloud<\/a> has also been plotted to suggest a wider <\/span>support range <\/em>(versus specific support levels).<\/span>
\nThe ideal entry spot<\/em> (not signal) is between $158 and $160.75, near the Ichimoku cloud\u2019s lowest level, Leading Span B.
\nA favorable entry signal<\/em> would be a candle or sequence of candles reversing upward on strong momentum and high volume.<\/p>\n

The Bottom Line<\/h2>\n

So, what are we getting at? In the midst of a significant CPI-driven downturn tanking all three US indices, Walmart Inc. (WMT) was one of 37 notable outliers, with its stock price rising before succumbing to the market trend. The StockCharts\u2019 scan engine identified WMT in the predefined New All-Time Highs<\/em> scan. There are many reasons to feel bullish about Walmart stock, but finding a favorable entry point takes a little nuancing. Hopefully, the layering of the indicators above can help you map out a basic entry strategy, particularly if you\u2019re bullish on WMT or looking to get in before or after its coming 3-for-1 split.<\/p>\n

Disclaimer:<\/em><\/strong> This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

By midday Tuesday, all three US indices had taken a massive plunge as a hotter-than-expected CPI inflation report left awash in red. What\u2019s interesting on days like this is running a New All-Time High scan (using StockCharts\u2019 scan engine) to see which stocks bucked the trend (even momentarily) amid such a significant downturn. The StockCharts […]<\/p>\n","protected":false},"author":0,"featured_media":1007,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1006","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/1006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=1006"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/1006\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/1007"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=1006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=1006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=1006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}