Walmart Inc. (NYSE: WMT) stock delivered a strong performance on Wednesday, rallying significantly before settling into a tight trading range. This price action, a classic sign of bullish consolidation, provides traders with clear signals ahead of the next trading week. For those watching the retail sector, understanding Walmart’s next move could be pivotal.
Wednesday’s Trading Session in Focus
Walmart stock concluded the session on July 3rd at
0.75 (0.77%). A minor dip in after-hours trading to $98.24 (-0.12%) suggests minimal overnight pressure. The real story, however, lies in the intraday chart:
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Intraday Action: After opening at $97.70 and seeing a brief dip to a low of
98.48** in the early afternoon.
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Bullish Consolidation: Crucially, after hitting its peak, the stock did not sell off. Instead, it entered a consolidation phase, trading sideways for the rest of the day in a narrow band. This pattern often indicates that buyers have absorbed the initial selling pressure at the new highs and are building a support base for a potential future move upward.
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Strong Close: The stock closed well above the previous day’s close of $97.61, cementing its positive daily trend.
Vital Financials for Context
A trader’s analysis is incomplete without considering the fundamental backdrop:
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Market Cap: With a market capitalization in the range of $940 Billion (based on the “78.50KCr” figure), Walmart is a foundational mega-cap stock.
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P/E Ratio: The Price-to-Earnings ratio stands at 42.20. This is a relatively high valuation for a traditional retailer, signaling that investors expect continued growth, likely from its e-commerce and advertising ventures.
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52-Week Range: The stock is trading near the upper end of its 52-week range ($66.67 – $105.30), indicating strong long-term momentum.
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Dividend Yield: A 0.96% yield offers a small return to long-term holders.
Analysis: Will the Stock Go Up or Down on Monday?
Based on Wednesday’s price action, the technical posture for Walmart stock appears bullish, but confirmation is required.
The Bullish Case (Reasons for an Upward Move):
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Strong Base Building: The consolidation near the day’s high is the most compelling bullish signal. It suggests that the upward move has strength and that the stock is coiling for another push.
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Clear Uptrend: The stock recovered decisively from its morning low and established a clear intraday uptrend.
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Closing Above Prior Resistance: The price action successfully cleared several minor resistance levels throughout the day.
The Bearish Case (Reasons for a Downward Move):
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Proximity to 52-Week High: As the stock approaches its all-time high of $105.30, it may encounter increased profit-taking from long-term investors.
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High Valuation: The elevated P/E ratio makes the stock potentially vulnerable to a pullback if there is any negative news concerning consumer spending or the broader economy.
Is It Right to Invest Today? A Trader’s Action Plan
Wednesday’s session has established very clear levels for traders to watch on Monday. Rather than acting pre-emptively, a disciplined trader should wait for the market to signal its next direction.
Your Actionable Takeaway:
Use Wednesday’s price levels as your guide for Monday’s open.
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Key Resistance / Bullish Trigger: The day’s high of $98.48 is the level to beat. A decisive breakout above this price on solid trading volume would confirm the bullish consolidation and could serve as an entry point for a trade targeting the $100 psychological level and higher.
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Key Support / Bearish Trigger: The bottom of the consolidation range (around
97.61**. This would indicate that the bullish momentum has faded and sellers are taking control.
In conclusion, Walmart stock is presenting a constructive, bullish setup. However, the smart trade is to wait for confirmation above resistance before committing capital, while keeping a close eye on key support levels.
Disclaimer: This article is for informational purposes only and is based on the analysis of the provided image. It does not constitute financial advice. All investment decisions should be made with the help of a qualified financial professional and after conducting your own thorough research.
