Walmart stock (WMT) has been one of the worst performing blue chips of 2015. The decline in Walmart stock price has been relentless and taken a toll on investors.
But perhaps investors will catch a break. Over the past two months, Walmart has carved out a base that could lift the stock price into early 2016.
Looking at the chart below, you can see that WMT hit the support area in November. And since then it has bounced and consolidated at higher prices… and looks ready to rally.
Reviewing the math involved with the decline, it appears that any rally higher for the stock could target the high 60’s. That would offer a potential of 10 points or more from current levels (which amounts to 15-20 percent). That offers good potential for disciplined traders… and something to trade against (i.e. set a stop against recent lows).
The chart below shows Walmart hitting and bouncing off a critical support level. That level needs to hold for any trade higher to work.
Walmart Stock Chart (WMT) – Monthly
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Twitter: @BartsCharts
Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
