Wal-Mart in recent years has somewhat lost its luster due to the dynamic development of Internet competition, even in the form of Amazon company. In response, the US supermarket chain also put pressure on development of online sales. Investments are related to costs and the market in the immediate publication of quarterly results of the Group expects a deterioration of profitability.
Last year, there was a large correction in a downward trend Wal-Mart which begun at the end of 2014. Nevertheless, rebound is suppressed at the key resistance zone at the level of 74 USD. From that moment we see return to declines and the shares of the American giant move within fairly wide channel. After successful test of support located at 65.60 USD bulls have gained a little more vigor and values of the company began to climb along the short-term bullish channel.
In addition, stock price managed to soar over 50-day moving average (black), which together with the lower bound of channel are the closest area of demand. The last two daily candles indicate a growing fatigue of buyers, as evidenced by their relatively long upper wicks. However, at this moment baseline scenario is further movement to the north and testing the upper range of medium-term downward channel. On the way to this place you should also pay attention to the 200-day moving average (orange), which can activate bears.
Company will present its results for the quarter ended in January, just before the start of Tuesday’s session on Wall Street. The market consensus assumes considerable decrease in profitability of the company Wal-Mart – the company is to present earnings per share equals 1.29 US dollars, while in the same period a year ago it was $1.49.
All analyzes are prepared by a team of X-Trade Brokers for the portal Comparic.com