Yahoo Finance

Key Takeaways

• Walmart shares are the spotlight this week ahead of the big box retailer’s quarterly results, due before the opening bell on Thursday.

• The stock has consolidated on declining trading volume ahead of the company's quarterly results, indicating that larger market participants remain on the sidelines leading into the report.

• Investors should watch major support levels on Walmart's chart near $90 and $85, while also monitoring important resistance levels near $100 and $105.

Walmart (WMT) shares are in the spotlight this week ahead of the big box retailer’s first quarter results, due before the opening bell on Thursday.

Last month, the retailer maintained its guidance of 3% to 4% sales growth for the first quarter, but cautioned its "range of outcomes" for operating income growth had widened amid tariff uncertainty. However, analysts at Morgan Stanley recently pointed out the retailer sits well positioned to manage import duties given its scale, supply chain advantages, and category mix.

Walmart shares closed little changed at around $97 on Monday, even as the broader market rallied following news that the U.S. and China had agreed to suspend for 90 days the huge tariffs that the countries had imposed on one another. The stock has gained 7% since the start of the year, outpacing the performance of major stock indexes, and have jumped 60% over the past 12 months, boosted in part by the retailer’s ability to attract higher income customers and grow its e-commerce business.

Below, we take a closer look at Walmart’s chart and apply technical analysis to identify major price levels worth watching out for.

Pre-Earnings Consolidation

Since a bear trap below the 200-day moving average emerged on Walmart’s chart last month, the shares have staged a sharp turnaround.

More recently, the stock has consolidated on declining trading volume ahead of the retailer’s quarterly results this week, indicating that larger market participants, such as institutional investors, remain on the sidelines leading into the report.

However, the relative strength index remains above neutral territory, signaling bullish price momentum.

Let’s, point out several major support and resistance levels that investors will likely be watching.

Major Support Levels to Watch

During retracements in the stock, investors should initially track the $90 level. This area may provide support near a horizontal line that connects the early-April peak with the lower range of sideways drift that formed on the chart between late December and mid-January.