Shares of Walmart (NYSE:) have reached fresh June lows today. At midday the stock is off just over 1% as it begins to pierce a key trendline that links the March/May lows. This breakdown-type action will likely drive WMT lower in the near term. Initial support is the $135-$136 area (April/May lows).
WMT took a major hit back on Feb. 18 following a disappointing Q4 earnings report. The stock finished the session with a 6.5% loss after opening with a huge breakdown gap. WMT fell another 7% over the next three weeks before bottoming in early March. The rally off the March lows carried the stock all the way back to the $144.00 area. WMT has been slipping since the gap-fill move at the May peak, which followed a solid the morning of May 18.
We expect WMT to retest support near the April/ May lows. A clear take-out of this important zone could open up the door for a move to new 2021 lows.
Note: We have no position.
You can read Gary S. Morrow’s original post here.
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