In this WMT daily bar chart below, you can see that the price rose from May to late November, but stopped before reaching its April peak. The price has retreated and is now below the 50-day moving average, but still above the 200-day line.
The On Balance Volume (OBV) line peaked at late November prices. The Moving Average Convergence Divergence (MACD) Oscillator has recently broken below the zero line for a perfect sell signal.
In this WMT weekly Japanese candlestick chart below, you can see the top reversal pattern of candlesticks in late November and early December. The price could quickly break below the 40-week moving average.
The weekly OBV line has fallen and the MACD oscillator has shrunk, approaching a crossover of the descending lines.
This WMT daily point and figure chart below shows an upside target in the $169 area, but a trade at $136.63 could undermine the chart.
In this weekly point-and-figure chart for WMT below, you can see an upside price target in the $205 area. A trade at $139.38 could turn this chart bearish.
Earning strategy: Avoid the long side of WMT as we may see further declines in the next 2-3 months.
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3 ETFs that outsmarted SPY
Let’s take a look at some of the S&P 500 based Invesco Exchange Traded Funds. These funds appeared to have a winning strategy during an eventful Q4 downturn.
