NEW YORK – Walmart Inc. (WMT) shares ended the official trading day in the red, but a crucial surge in after-hours activity is fueling investor optimism for a potential rebound when markets open on Monday.
The retail behemoth closed Friday’s session at $94.44, a decline of $0.37 or 0.39%. The day was marked by volatility, with the stock opening at $94.52 and hitting an early high of $95.32 before succumbing to selling pressure that drove it to an intraday low of $94.00. The stock spent most of the day trending below the previous day’s close of $94.81.
However, the story changed after the 4:00 PM closing bell. In after-hours trading, Walmart shares clawed back their losses and then some, rising to $94.52, a gain of 0.085%. This late-day buying interest is a significant bullish indicator. It suggests that investors saw value at the closing price and that positive sentiment is carrying over into the new week.
Analysis for Monday:
The after-hours recovery is the most compelling piece of evidence pointing towards a higher open on Monday. Here’s why:
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Positive Momentum: A green close in after-hours trading often signals that the immediate selling pressure has been exhausted, and buyers are stepping in to position themselves for the next session.
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Support at the Low: The stock successfully defended its intraday low of $94.00. This level may now act as a technical support line, indicating that traders are willing to buy at this price, preventing further drops.
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Psychological Reversal: Despite a negative close, the ability to erase those losses immediately after hours can shift market psychology from bearish to cautiously optimistic.
Outlook:
While the overall negative performance during the main session cannot be ignored, the strength shown after the market close is a powerful signal. All eyes will be on Walmart’s pre-market performance on Monday morning. Based on Friday’s closing action, traders can anticipate that Walmart stock is likely to open higher on Monday, as it looks to build on its after-hours momentum and challenge the resistance levels from the previous week.
