Today, the stock price of the American company Walmart has again approached the strong historical resistance level of 151.5. Past attempts to overcome it in November 2020, August and again November 2021 were unsuccessful.
At the same time, two doji stars formed one after the other on the daily chart, which are considered very strong reversal patterns in technical analysis.
In addition to the above, the closing price of the stocks during the last five trading days crosses or touches the upper Bollinger band, which in turn forms a technical analysis signal called a Bollinger reversal.
The value of the Accumulation/Distributoin auxiliary indicator, in close conjunction with which the Bollinger reversal signals have performed well, is in the negative zone, which also indicates a likely decline in the value of Walmart stocks.
Thus, from a technical point of view, there is a good opportunity to open short positions with potential profit.
From the side of fundamental analysis factors, the financial statements on the state of the company for four quarters inspire some optimism, demonstrating the growth of the company's income and EPS (earnings per share) above the forecast values. However, a decrease in the forecasts for these indicators for the next quarter, in the short term, may negatively affect the value of Walmart stocks.
The positive attitude of existing and potential investors can be supported by the official intention of the company to join the cryptocurrency market, namely to register and issue its own cryptocurrency and a number of non-interchangeable tokens (NFT) in the vastness of the metaverse. The plans are promising, but against the background of fake reports about Walmart and Litecoin last year, it would be safer to wait for their implementation.
Variant of trading strategy:
Sale Walmart stocks today during the bid opening with a target level of 146 (Take Profit 1) and 142 (Take Profit 2), and a protection order higher than 154 (Stop Loss).
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