Walmart is set up well heading into earnings next week, says Katie Stockton

CNBC

a day ago

Walmart Inc. (WMT) added more than 5% last week, landing back on the radar of technical analysts as it filled its gap from February. The rally reflects not only positive short-term momentum, evident in the daily MACD, but also a positive intermediate-term momentum shift. The weekly MACD has a bullish crossover suggesting the rally may have staying power. WMT is regaining momentum relative to the S & P 500 Index (SPX) after having underperformed the broader equity market since the April low. The ratio of WMT to the SPX has reclaimed its 200-day moving average in a reversal of the short-term downtrend that began in April. This puts WMT in a better position to see a greater phase of outperformance in the short term. Walmart reports earnings on Aug. 21, so we would be mindful of key levels going into the print. Should final resistance near $105 be cleared, it would not only mark a resumption of the cyclical uptrend, but it would clear the way for upside follow-through to a short-term measured move projection of roughly $115. Major support for WMT is defined in part by the 200-day moving average and weekly cloud model, which converge near $94. WMT is in a strong secular uptrend with price above the rising monthly cloud model, which points higher looking out into 2027. The uptrend is poised to make another wave higher given the new bullish 'pop' higher in the monthly stochastics. However, the next leg higher is unlikely to be as impressive as the uptrend in 2024, since long-term upside momentum has dropped off meaningfully since the start of the year. This indicates WMT might be in the later stages of its cyclical uptrend, also noting price is stretched well above secular support from the monthly cloud. Overall, WMT's technical setup is favorable heading into next week's earnings print in both absolute terms and relative to the SPX. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. 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