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Fan Yang

Walmart (WMT) Rallies Into Fresh Highs; Bulls in Charge with $110 as a New Anchor

Walmart $WMT is bullish, even though it  has been consolidating with some choppy bearish corrections since 2018. However, price has broken away from this period of consolidation, and has confirmed a bullish continuation mode.

WMT Weekly Chart

(click to enlarge)

Bulls in Charge:
- We can see that after the 2015 correction, bulls have regained control.
- Even after the 2018 consolidation, price held above the 200-week simple moving average (SMA).
- Furthermore, the RSI has held above 40 since it pushed above 70 in early 2018. This reflects maintenance of the bullish momentum built by the 2016-2018 rally.
- More recently, we can see that price has closed above a recent resistance of $115.35.
- I think at this point, WMT will be anchored above $110. In other words, if we see a pullback, I would anticipate buying around $110. 
- A deeper correction might reach $105, and this might be part of a longer period of consolidation. But as long as price is holding above $105, I see WMT as bullish outside of potential consolidation periods. 
- A break below $104 would signal an even more significant period of correction/consolidation, potentially like the one we had in 2018. 

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