Buy the Earnings Dip or Steer Clear at Walmart Stock Alert?

Buy the Earnings Dip or Steer Clear at Walmart Stock Alert? ...

Reportstock is being hampered by earnings, down 10% in Tuesday''s trading session.

This is far from the bulls'' desire, but given today''s decline, it will likely far exceed the worst-case scenarios that many investors had anticipated.

Procter & Gamble (PG) - Get Procter & Gamble Company Reportand Johnson & Johnson (JNJ) - Get Johnson & Johnson Reportproved excellent results and noted that inflation has not ruined its business.

If Walmart come to that, many investors expect them to do so in this type of environment, combined with recession worries.

Inflation peaks plummeting into the bottom line of the corporation, as it missed profit expectations and was forced to cut its forecast.

Some are taking a leap of faith in Walmart stock, while others acknowledge its damaging results, but consider it as acceptable from current levels.

There are a few key levels to keep an eye on in the future.

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Trading Walmart Stock

Walmart stock is charted hebdomado.

TrendSpider.com has released a chart.

When we look at the chart, we can see exactly what these traders are talking about. One can clearly see that the mid-$130s has been around for more than a year.

In 2021, Walmart splintered this area and reduced it to $126.28. However, as Walmart stock slowed, it continued to find the mid-$130s as financial aid throughout the whole year.

If the stock continues to decline, keep an eye on the $132 level. Thats this years low and if it fails to provide support, traders will likely look for a potential drop down to the 2021 low at $126.28 and a test of the 200-week moving average.

For bulls, this area would be a reasonable risk/reward opportunity, particularly if we receive an undercut of $126.28, a tag of the 200-week moving average, and a bounce back through $126.28 (apologies on writing $126.28 so much).

Those types of reversal might be helpful to bulls.

Aggressive longs may be considering nibbling in this mid-$130s region and looking for a bounce. If it fails, $132 is the key item to keep an eye on.

Keep an eye on today''s high near $137.50. Above that, you can get $140, followed by $144. Near the latter, I''d expect quite a bit of resistance, if we do so in the near future.

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