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Walmart (WMT) stock gapped up to new all-time highs on Thursday morning, after the retailer's third-quarter earnings impressed Wall Street. 

Within a few hours of the open, though, those gains fizzled away. That can't be a good sign, right?

The reaction to the report has left some bulls scratching their heads. Walmart reported earnings of $1.16 a share, 7 cents ahead of expectations. While revenue of $128 billion was in line with estimates, sales grew 2.5% year-over-year and comparable-store sales growth of 3.2% beat expectations of 3.1%.

Finally, management gave a slight boost to its full-year earnings outlook.

By most accounts, it was a solid three months of business, and the next three should be sound as well. That's not doing much to comfort investors, though, with the shares about 1% down on the day.

With the mixed reaction to the results, Walmart is a worthy candidate for Real Money'sStock of the Day. Let's look at the charts.

Trading Walmart Stock

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As you can see on the daily chart above, Walmart stock has done pretty well for the bulls over the past year. The shares opened for trading at $124.60 and hit a high of $125.38. But since then it's endured a steady pullback throughout the day.

But important for bulls will be to see if the shares can firm up in the $118 to $120 area.

First, $120 has been resistance for several months now. WMT stock finally closed above this mark on Wednesday -- just ahead of its earnings report -- and now after gapping higher, it would be a bullish sign to see bulls defending this level. So far, they are.

When prior resistance turns into support, it's a bullish development.

Further, Walmart stock has its 20-day and 50-day moving averages between the $118 and $120 zone. Particularly when it comes to the latter, it has played a notable role as support throughout 2019.

Below the 50-day moving average and WMT stock could make its way down to the $112.50 to $115 range. But let's not get ahead of our skis. The $120 level could very well hold, and if it does, a bounce back to the post-earnings high could be in the cards.

The bottom line: Bulls need to see $118 to $120 hold. Below and more consolidation is needed. Above and the post-earnings highs are on the table.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.