Walmart IPO’d in 1974. Then a recent college grad and not yet an investor in the markets, I paid it no mind. Anyone who did invest then has done remarkably well with extraordinary gains.
It bears paying attention to the stock now. During their earnings report on February 20, the company noted that earnings for 2025 would be below expectations. This warning comes on the heels of the threat of tariffs being placed on China imports, which imports constitute a large number of Walmart’s products.
Here are monthly charts of WMT: the first chart showing its entire history; the second chart showing recent price movement.
Note the indecision doji candle and also know that for this chart, the 1974 uptrend line has been moved, twice, and is now placed at the lower and next line of support.
Here’s how I think we’ll know whether WMT will be trending lower or not in the coming weeks and months. With the gap down after earnings, price fell briefly out of the blue channel and has since made a relatively strong move back up inside it.
Let that channel be the guide. Losing its support a second time will portend lower prices. Losing support of the green uptrend will most certainly portend the same and possibly be a harbinger for the markets in general.
