Shares of Wal-Mart have reached fresh June lows today. At mid day the stock is off just over 1% as it begins to pierce a key trend line that links the March/May lows. This breakdown type action will likely drive WMT lower in the near term. Initial support is the $135-$136 area(April/May lows).
WMT took a major hit back on February 18th following a disappointing Q4 earnings report(Walmart Shares Slump as Full-Year Sales Forecasts, Q4 Profit Disappoints (fxempire.com)). The stock finished the session with a 6.5% loss after opening with a huge breakdown gap. WMT fell another 7% over the next three weeks before bottoming in early March. The rally off the March lows carried the stock all the way back to the $144.00 area. WMT has been slipping since the gap fill move at the May peak which followed a solid Q1 earnings report the morning of May 18th(Walmart beats expectations, gains share in grocery – MarketWatch).
We expect WMT to retest support near the April/ May lows. A clear take out of this important zone could open up the door for a move to new 2021 lows.