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Fan Yang

Walmart Inc. (WMT) - I Like the Ascending Triangle vs. Key Resistance

Walmart $WMT continues to hold under the resistance around $104, but I am liking the ascending triangle pattern that has developed since late February. In other words, I think WMT has a good chance of breaking above $104 and eventually pushing to $110, which price almost got to in early 2018.

WMT Daily Chart

(click to enlarge)

Ascending Triangle vs. Large Symmetric Triangle
- On the daily chart, we can see that price action since early 2018 has been in triangle consolidation mode.
- Before that the market has been bullish. 
- After the late 2018 dip, price started to recover sharply. 
- Price started to trade above the 200-day simple moving average (SMA). 
- Furthermore, the RSI started to hold above 40 and pushed above 70 several times. 
- These dynamics reflect a bullish market.
- Now, we have an ascending triangle development, which involves higher lows and a flat resistance around $104.
- It is with with all these clues that I think price will be able to break above $104 and push towards the highs just under $110. 
- The ability to reach $110 would also convince me that the prospect of breaking higher is strong. But perhaps in the short-term we will see some consolidation or correction when price approaches $110.

WMT Weekly Chart

(click to enlarge)

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