Walmart stock (NYSE: WMT) is at a critical juncture for traders heading into the new week. After closing with a modest loss on Friday, positive after-hours and pre-market activity are signaling the potential for a bullish start on Monday. For investors and traders in the USA, understanding Friday’s key levels and the emerging sentiment is crucial for making an informed decision.
Friday’s Market Recap: A Battle Between Bulls and Bears
Walmart’s stock ended Friday’s trading session at
0.39 (0.41%). The day’s trading action showed a struggle to maintain upward momentum:
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Open: $94.52
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Day’s High: $95.32
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Day’s Low: $94.00
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Previous Close: $94.83
The stock opened slightly lower than its previous close and failed to hold its session high, eventually settling near the lower end of its daily range. The price of
95.32 proved to be a significant resistance point. The inability to close above the previous day’s finish of $94.83 indicates a slight win for the bears on Friday.
The Bullish Signal: Pre-Market Points to a Higher Open on Monday
The most compelling piece of data for Monday’s forecast is the pre-market performance. The stock was last seen trading at
0.26 (0.28%).
This positive movement after the official close on Friday suggests that buyer interest is picking up. This pre-market rally is a strong indicator that Walmart stock will likely attempt to open higher on Monday, aiming to reclaim the ground lost and push past the previous close of $94.83.
What to Watch for on Monday: Key Levels and Prediction
Based on the available data, the market outlook for Walmart stock on Monday appears cautiously optimistic.
Prediction: The market is likely to open higher on Monday. The primary challenge will be for the stock to break through and hold above the $94.83 resistance level (Friday’s previous close).
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If the stock opens above
95.32.
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If the stock fails to break $94.83 or falls back below Friday’s open of
94.00 support level.
Is It Right to Invest Today?
For traders, the pre-market activity presents a potential entry point, but confirmation is key. A long position might be considered if the stock shows strength above the $94.83 mark at the open.
For longer-term investors, the fundamentals provide a broader context:
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P/E Ratio: At 40.51, the stock is priced at a premium, suggesting high investor expectations for future growth.
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52-Week Range: The current price is much closer to its 52-week high (
66.30), reflecting strong long-term performance.
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Dividend Yield: A 1.00% yield offers a small but steady return.
In conclusion, while Friday was a down day for Walmart stock, the subsequent pre-market strength points to a likely upward move on Monday. Traders should watch the opening action closely around the $94.83 level to confirm this bullish sentiment before committing to a position.
Disclaimer: This article is for informational purposes only and is based on the analysis of provided data. It does not constitute financial advice. All trading and investment decisions should be made based on your own research and consultation with a financial professional.
