Walmart Inc. (WMT/NYSE): general review
25 May 2018, 12:52
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 81.90 |
| Take Profit | 80.00, 78.00, 77.00 |
| Stop Loss | 84.00 |
| Key Levels | 78.00, 82.00, 85.00, 87.50, 90.00 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 85.10 |
| Take Profit | 88.00, 90.00 |
| Stop Loss | 83.00 |
| Key Levels | 78.00, 82.00, 85.00, 87.50, 90.00 |
Current trend
Last week, Walmart Inc. published a quarterly report with results higher than the expectations of The Wall Street. Revenue grew 4% YoY to USD 123 billion, earnings per share decreased 28% YoY to USD 0.72, due to new accounting standards. The growth of comparable sales in the US was 2.1%, Internet sales grew by 33%. Despite a strong report, company’s shares traded near the 7-month low, which was updated in early May amid news about the purchase of 77% of Indian Flipkart for USD 16 billion. The deal will require an increase in the debt burden and will affect the decrease in earnings per share in the financial year 2019 by USD 0.25-0.30.
Last week, Walmart Inc. share price decreased by 1.94%. S&P500 went up by 0.73% within the same period.
Support and resistance
Last sessions, company's shares were influenced by "bearish" tendencies. Currently, the company's shares are testing the key support level of 82.00. 85.00 is a "mirror" resistance level.
Indicators show the strength of the sellers: the price has consolidated below MA(50) and MA(200), and MACD is in the negative zone. However, correction of #WMT quotes is possible in the near future. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors, we can say that #WMT shares are undervalued.
Support levels: 82.00, 78.00.
Resistance levels: 85.00, 87.50, 90.00.
Trading tips
If the price consolidates below the support level of 82.00, one may consider selling #WMT. Potential profits should be locked in by orders at 80.00, 78.00 and 77.00. Stop-loss is at 84.00.
If the price consolidates above the resistance level of 85.00, one should expect a correction. The moving potential is aimed at the area of 88.00-90.00. Stop-loss is at 83.00.
Implementation time: 3 days.
Last week, Walmart Inc. published a quarterly report with results higher than the expectations of The Wall Street. Revenue grew 4% YoY to USD 123 billion, earnings per share decreased 28% YoY to USD 0.72, due to new accounting standards. The growth of comparable sales in the US was 2.1%, Internet sales grew by 33%. Despite a strong report, company’s shares traded near the 7-month low, which was updated in early May amid news about the purchase of 77% of Indian Flipkart for USD 16 billion. The deal will require an increase in the debt burden and will affect the decrease in earnings per share in the financial year 2019 by USD 0.25-0.30.
Last week, Walmart Inc. share price decreased by 1.94%. S&P500 went up by 0.73% within the same period.
Support and resistance
Last sessions, company's shares were influenced by "bearish" tendencies. Currently, the company's shares are testing the key support level of 82.00. 85.00 is a "mirror" resistance level.
Indicators show the strength of the sellers: the price has consolidated below MA(50) and MA(200), and MACD is in the negative zone. However, correction of #WMT quotes is possible in the near future. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors, we can say that #WMT shares are undervalued.
Support levels: 82.00, 78.00.
Resistance levels: 85.00, 87.50, 90.00.
Trading tips
If the price consolidates below the support level of 82.00, one may consider selling #WMT. Potential profits should be locked in by orders at 80.00, 78.00 and 77.00. Stop-loss is at 84.00.
If the price consolidates above the resistance level of 85.00, one should expect a correction. The moving potential is aimed at the area of 88.00-90.00. Stop-loss is at 83.00.
Implementation time: 3 days.
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