A Walmart (NYSE: WMT) Bull Run Leads the Market

Elliottwave Forecast  |

Photo credit courtesy of iStockphoto.com/user:Niloo138

Walmart (NYSE: WMT) is the world’s largest retailer, operating discount stores, supercenters, and grocery stores around the world.

In today's article, we'll take a look at the short-term cycle of the stock based on Elliott Wave Theory

Back in July 2019, WMT made new all-time highs by breaking above the January 2018 peak, and opened a bullish sequence for the stock from their 2015 low supporting a move higher toward a target area at equal legs $135 - $168.

Since then, the stock became more supported in the short term looking to find buyers in every pullback against an $81 low.

The first correction from the July peak came in a double-three structure, which found buyers at the blue box area of $106 - $102, before resuming the rally again to new all-time highs. The blue box in our charts is a high-frequency area where the market is likely to end cycles and make a turn.

The rally from August 2019 low can be labeled in 2 different ways :

* Leading Diagonal that can produce a larger 3-wave pullback to correct the previous cycle reaching the 50% - 61.8% Fibonacci retracement area of $112 - $110, before buyers appear again to resume the bullish trend, or at least bounce in 3 waves as long as $104 low is holding.

* Bullish nest taking place with a small connector already in place at 10/03 low $114.5, and therefore short-term pullbacks will remain supported above that level for the stock to continue the rally higher.

In both scenarios, WMT will be a winner as the result of these impulsive structures taking place, and consequently traders can looking for buying opportunities in the short term pullbacks in 3, 7 or 11 swings to join the bullish trend.

WMT 4H Chart ( Diagonal )

Walmart WMT 4H Chart

Click to enlarge

WMT 4H Chart ( Nest )

Walmart WMT 4H Chart

Click to enlarge

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The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer. The author of this article, or a firm that employs the author, is a holder of the following securities mentioned in this article : none

Companies

Symbol Name Price Change % Volume
WMT Walmart Inc. 118.87 -1.78 -1.48 10,146,507 Trade

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