Walmart Inc (WMT) operates a chain of hypermarkets, discount departmental stores and grocery stores in more than 20 countries. It also has an e-commerce business to further expand the offering to customers. The conglomerate focuses on providing goods to cost conscious consumers. WMT is listed on NYSE and is a component on DJI and S&P 500 under Consumer Staples.

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WMT price was moving in a range between $132 and $149 since Nov 2021. There were several tests around $132 until a significant Wyckoff sign of strength rally that began in March 2022. Up until this point, the price action was still looking bullish.

The price hit $159.49 on 21 April with relatively low volume. Subsequently, the price pulled back around $150 on 5 May onward where the next few bars started showing rejection tails and inability to rally up.

Then the earnings result on 17 May acted as a catalyst, and the price just gap down. This came with a spike of volume, indicating the presence of supply and a Wyckoff change of character. This continued until 20 May, where a Wyckoff selling climax (SC) was formed. The price then reacted with an automatic rally to around $130.

There were attempts to rally above $130. The gap down on 26 July is likely a Wyckoff spring. The spike in volume signals increased effort but the result was a higher low than SC on 20 May. This suggests a bullish sign or accumulation phase for the next rallies.

The price rallied to approximately $143 on 17 August before pulling back, to form a new range between $130 and $143. Nevertheless, the price maintained above $128 and started another rally in mid October.

Bias

Slightly bullish. The price is challenging the $143 with relatively low volume. According to Wyckoff phase analysis, there is a high probability WBT price will break above $143 to test $147 then retrace to around $140 to form Wyckoff back up (BU). Alternatively, if price cannot commit above $136, will retest low of $128.

WBT earning results is often viewed as a marker of consumer spending power. Hence, it would be interesting to see how the price action unfolds ahead. Recent volatility in the market makes it hard to identify winning stocks. In spite of that, there are techniques that Wyckoff method could help pick these winning stocks. 

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