Walmart (WMT) Trying to Extend a Bearish Correction
Last week, we saw shares of Walmart (WMT) break below a rising channel support. This week, price action is suggesting that bears are indeed in charge and we should anticipate another period of bearish correction.
Walmart (WMT) 1/11 Daily Chart
(click to enlarge)
Bears in Charge:
- After price retreated from 75.00 in August 2016, the RSI was also dragged down to 30. This reflects bearish momentum.
- When the RSI held below 60, it suggested continuation of this bearish momentum.
- Further the fact that price is now under the 200-, 100-, and 50-day simple moving average (SMAs) shows that the market is at least NOT bullish anymore.
Bearish Outside Bar and Bearish Outlook:
- The 1/10 session represents a failed attempt to climb back above 69.
- The high are above the previous day's high and the low is below the previous day's low. This is a bearish outside bar that reflects conviction of the bears.
- A break below 68.10 would be another confirmation of the bearish outlook.
- We should anticipate a push towards 67.10 before seeing some buying.
- As long as price holds under 70, we should anticipate a sideways to bearish market.
- However, for now, we should hold our bearish outlook to the 62-63 support area.