Published On: Mon, Mar 20th, 2017

Wal-Mart Stores, Inc. (WMT/NYSE/S&P500)


Industry: General store

Current trend

The Wall Street analysts expect the Wal-Mart to get a significant profit this year due to the strategic investments into the multichannel sale systems, implemented in the past two years. The e-commerce segment of the company shows the strong sales due to the online shops and the home delivery shops expansion. According to the Wal-Mart development strategy, the company plans to invest into the modernization of the shops and the integration of the new technologies in order to lower the operational costs and to increase the buyers’ traffic.

The strategy assumes the purchase of the online retailers. The Wal-Mart has purchased the Jet/Hayneedle, Shoebuy and Moosejaw. Last week the company purchased the ModCloth — the women clothes online store by $ 51-70 million (the exact sum is not revealed).

During the last week the Wal-Mart stocks lowered by 0.30% against the lowering of the S&P 500 index by 0.13%.

Key levels

On Friday the trading activity was high. The issuer kept the local resistance level of 70.70, which caused the aggressive sellings. In the end of the trading session the prices lowered by 0.78%. Now the support and resistance levels are 70.10 and 70.40 correspondingly. The indicators reflect the “bearish” moods. Find entering points to open short positions.

Support levels: 70.10, 69.70.

Resistance levels: 70.40, 70.70, 71.20.

Trading scenario

If the price is set below the level of 70.10, open short positions. Stop loss is at 70.35. The price can move to the level of 69.60-69.35.

If the price is set above the local resistance level of 70.40, open long positions. The price can move to the level of 70.90-71.15. Stop loss is at 70.15.

Forex Analysis

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