November 16 Chart of the Day - Walmart
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Walmart (WMT) posted higher than expected revenue of $160.8 billion for its third quarter earnings on Thursday morning. Adjusted earnings per share came in at $1.53, versus estimates of $1.52.
Despite the earnings beat, Walmart gave soft guidance for the rest of the year and shares were trading down over 7% earlier today around $157.
Falling from its $169.94 all time high (ATH) set yesterday some may wonder if its news caused the drop or price action technical analysis.
When any chart is trading at or near all time highs trading or investing in it can be tricky at best due to the lack of historical data at those levels.
Sells can come suddenly and viciously as stakeholders can often scramble to lock in profits.
Price often likes to retreat to familiar territory where volume was greater in the past. This is all "normal" in the markets as price continuously cycles up, and cycles down across all time frames.
Looking at the monthly chart from what we call a basic structure perspective (using only support/resistance and trend) we can see that previously price broke above and then came back down to retest a long term trend line before going on to make new ATHs.
When adding Fibonacci to that same chart we can see how price methodically cycled up and down behaving in a very technically correct manner. Traders and investors familiar with Fibonacci sequencing as shared in our FREE Fib Guide and taught in our Master the Magic of Fibonacci Course could have benefited along the way.
We've identified levels of interest should price decide to continue in a similar fashion that began back in 2016...
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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