The biggest big box retailer Walmart (WMT) is the retail benchmark component of the Dow Jones Industrial Average (INDU) , and is one of the eight "Dogs of the Dow" for 2016. Walmart's smaller rival Target (TGT) is lagging year to date.
Target reports quarterly earnings before the opening bell on Wednesday. Analysts expect the retailer to earn 83 cents a share. The company beat earnings-per-share estimates at its last report on Aug. 17, but the stock gapped lower, given disappointing same-store sales. The stock remains below this price gap and below its 200-day simple moving average of $73.30.
Walmart reports quarterly earnings before the opening bell on Thursday. Analysts expect the megaretailer to earn 96 cents a share. Last week, the retail giant announced its Black Friday list of sale items, including $1.96 movies and a $798 65-inch Samsung (SSNLF) TV. The stock had a positive reaction to the earnings beat on Aug. 18. That proved to be a sell-on-strength opportunity, as the high that day of $75.19 is the 2016 high.
Here are the daily and weekly charts for the two big box retailers and how to trade them.
The daily charts feature Fibonacci retracement levels of the declines from 2015 highs to the late-2015 or May 2016 lows. Retracements are 23.6%, 38.2%, 50% and 61.8% of these 2015-to-2016 declines.
The weekly chart shows a red line through the price bars, marking the key weekly moving average (a five-week modified moving average). The green line is the 200-week simple moving average, the "reversion to the mean."
The study in red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicate overbought and readings below 20.00 indicate oversold.
A negative weekly chart shows the stock below its key weekly moving average, with weekly momentum declining below 80.00 in a trend toward 20.00. A positive weekly chart shows the stock above its key weekly moving average, with weekly momentum rising above 20.00 in a trend towards 80.00.