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



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