After I wrote the other day about Walmart’s weak chart, it shot higher, up about 14% for the year. Dummy me hadn’t even checked their earnings date when I wrote the piece.
After Walmart’s earnings report this morning, Investopedia wrote that “all 12 of the analysts tracked by Visible Alpha with recent assessments recommend buying shares.” If they liked shares at $102, I imagine they like them even better now around 98.
Walmart’s earnings didn’t meet analyst earnings projections of $0.73, and instead were $0.68. Gee, a $0.05 difference and the stock price slides. (Recall at their prior earnings report in February that WMT said to expect lower earnings.)
Investopedia also quoted JP Morgan analysts with, “Net-net, we see some potential small pressure on the shares but the report in no way fundamentally alters the bull case, in our view.”
In any case, here’s Walmart’s daily chart, easy enuf to determine by the trendlines whether your trade is on the right or wrong side. The price rise into this morning’s earnings release is understandable. So, too, is the price decline whose low hit directly at the top of the Ichimoku Cloud.
The Bear Cave wrote today about problems at GOGO. Guess what this company does! Exactly what Tim was complaining about while on the plane today – inflight internet.
Quoting TheBearCave, “The company is a favorite among value investors who believe it will be able to compete favorably against SpaceX’s Starlink because of its premium service, legacy relationships, apolitical stance, and its ability to be easily installed on smaller jets.”
TheBearCave concludes the opposite. (I’m not a paid subscriber, but you can read some of their post here.)
Below are monthly and daily charts to show that GOGO isn’t going the right way…if you’re bullish.
Houston, we have an “h”. The h-break on the daily chart makes hitting the first lower gap at 9.52 a reasonable target.
Lastly, crazy CVNA. It was four years ago that CVNA made its high, before dropping to a V-bottom low in December 2022. The rebound since has been astounding and its recent earnings on 30Jly25 gapped price to an all time high of 413.33 (compared to previous high of 376.83).
On the weekly chart, price has fallen from a rising wedge, and backtested the bottom of the wedge.
Divergence shown on charts between price and an indicator, isn’t itself a trading signal, but it usually has predictive influence over the direction price will take. In the case of CVNA, that direction is down.
