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Walmart Beats Earnings Expectations Just Weeks After Issuing Guidance Warning

By Mike PaulenoffStock MarketsAug 16, 2022 01:35PM ET
www.investing.com/analysis/wallmart-beats-earnings-expectations-just--weeks-after-issuing-guidance-warning-200628588
Walmart Beats Earnings Expectations Just Weeks After Issuing Guidance Warning
By Mike Paulenoff   |  Aug 16, 2022 01:35PM ET
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After reporting earnings this morning, Walmart Inc (NYSE:WMT) has popped 5% so far today.

Technically, my 4-hour chart shows that WMT has recovered 130% of the recent plunge (7/25) from 133 to 119 in reaction to its guidance warning (strange though that all is forgotten or corrected in just three weeks). The stock is heading for a probe of key Fibonacci recovery resistance lodged from 140 to 145, where we will learn if all of the price action since the May 2022 low at 117.27 represents either a base formation and upside breakout into a new bull phase or a counter-trend rally period within a still-dominant, larger-developing multi-month corrective process.

 
Walmart 4-Hour Chart.
Walmart 4-Hour Chart.


From the perspective of my longer-term pattern and momentum work shown on my 4+ year daily chart, decades of experience analyzing patterns and pattern symmetry suggest strongly that a bull phase peaked and ended at the April 2022 high at 160.77. Therefore, my sense is that the down-move in WMT from the April 2022 all-time high at 160.77 to the May 2022 low at 117.27 represents the initial "shot over the bow" of a larger-developing, incomplete bear phase that will see a resumption of intense weakness when the current counter-trend strength exhausts itself.
 
Walmart Long-Term 4-Hour Chart.
Walmart Long-Term 4-Hour Chart.
 

Walmart Long-Term Daily Chart.
Walmart Long-Term Daily Chart.


Where might that be?

Let's watch WMT first navigate the down-sloping 200 DMA, now at 138.79 (as of yesterday's close), and if taken out on a closing basis, then navigate the 140-145 Fibonacci Recovery Resistance zone of its entire April-May plunge (shown on my 4-hour chart). If that is successfully hurdled, then we will set our sights and expectations on the 148-150 target zone, where WMT strength will close the still-unfilled down gap left behind in reaction to the mid-May earnings miss.

If WMT reverses sharply lower in a powerful downside reversal signal from 1) 139 (200 DMA area) or 2) 140-145 (Fibonacci Resistance) or 3) 148-150 (5/13/22 Gap-Fill), then my work will be warning me that WMT is extremely vulnerable to another shot over the bow, and will be susceptible to rolling over into a negative period that breaks 117.27 en route to 100.

For the moment, the bulls are in control of WMT, eyeing a test of the down-sloping 200 DMA in the vicinity of 139. Let's watch the action with interest.

Walmart Beats Earnings Expectations Just Weeks After Issuing Guidance Warning
 

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Walmart Beats Earnings Expectations Just Weeks After Issuing Guidance Warning

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Comments (2)
Jedrek Zak
Jedrek Zak Aug 16, 2022 11:00PM ET
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Walmart literally guided 1% higher than their July adjustment that sent their shares tumbling and it rallies hard. so stupid. this market is dumb.
Kris Jay
Kris Jay Aug 16, 2022 4:04PM ET
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like Kramer on here, you provide good technical analysis but RobinHood traders and others dont use technical analysis, they have called the bottom based on " a feeling" and "experience in the last 10 years that alll down trends are followed by immediate V recovery.  They are insistent that Fed will reverse interest hikes in September so up the stocks go!!
Jeff Gordon
Jeff Gordon Aug 16, 2022 4:04PM ET
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this is literally true. I trade $50k in Robinhood and have no clue about charts. I trade in sentiment and momentum, and just how things feel. Usually I buy at the top and sell at the low...but I hit a few winners to make up for it. lol
Paul Browning
Paul Browning Aug 16, 2022 4:04PM ET
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What Robinhood traders do really doesn't matter. What is the big money doing?
 
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