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 taker 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 January 2018 peak and opened a bullish sequence for the stock from 2015 low supporting a move higher toward target area at equal legs $135 - $168. Since then the stock become more supported in the short term and looking to find buyers in every pullback against $81 low.
The first correction from July peak came in a double three structure which found buyers at the blue box area $106 - $102 before resuming the rally again to new all time highs. The blue boxe in our charts are 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 waves pullback to correct the previous cycle and can reach the 50% - 61.8% Fibonacci retracement area $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 structure taking place and consequently traders can looking for buying opportunities in the short term pullbacks in 3 or 7 or 11 swings to join the bullish trend.
WMT 4H Chart ( Diagonal )
WMT 4H Chart ( Nest )