Walmart Stock Drops After Earnings – Key Support & Resistance Levels to Watch
Key Takeaways
- Walmart shares fell after recording their largest one-day loss in over a year following disappointing guidance from the retail giant.
- The stock faced selling pressure near the upper trendline of an ascending channel, with losses accelerating post-earnings.
- Investors should monitor critical support levels near $90, $86, and $81, whil resistance sits near $105.
Walmart’s Recent Stock Movement
Walmart (WMT) shares continued their decline, posting their largest one-day drop in over a year after releasing a cautious outlook. The company’s historically conservative guidance cited economic unpredictability, including concerns over consumer spending trends and tariffs imposed by the Trump administration.
Despite the recent downturn, Walmart shares have climbed 64% over the past year, bolstered by its ability to attract higher-income consumers seeking affordability on essential goods. On Friday, the stock closed at $94.78, down 2.5%, amid a broader U.S. stock sell-off.
Below, we examine Walmart’s technical chart to identify critical price levels to watch post-earnings.
Ascending Channel Remains in Play
Walmart has maintained an upward trajectory within an ascending channel since March last year. However, recent selling pressure emerged near the upper trendline of this pattern, particularly after the stock reached an all-time high.
Thursday’s earnings-driven drop came on the highest daily trading volume since May, signaling strong selling conviction among investors.
Let’s dive into key support and resistance levels that could shape Walmart’s next price action.
Crucial Support Levels to Watch
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| source : TradingView.com |
As of Friday’s session, the $96 level was a key point of interest. This level coincided with December’s peak and the 50-day moving average, which had previously acted as strong support. However, with the stock closing below this level, further declines could be expected.
- $90 Support: This level corresponds with the early January low and could attract buyers looking for a short-term bounce.
- $86 Support: A crucial area where buyers may step in, as it aligns with the top of a narrow consolidation zone from November.
- $81 Support: A more significant correction could push Walmart stock to this level, where long-term investors might accumulate shares near the 200-day moving average.
Key Resistance Area to Monitor
If Walmart rebounds, the $105 resistance level is crucial. This area represents the recent all-time high and sits near the upper boundary of the ascending channel. Investors who bought at lower levels may seek exit opportunities around this price.
Final Thoughts
Walmart remains a dominant force in the retail sector, and while its recent sell-off raises concerns, technical support levels could provide buying opportunities. Investors should closely monitor the $90, $86, and $81 zones for signs of stability while keeping an eye on $105 for a potential breakout.
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