Watch These Walmart Price Levels Ahead of Earnings Report This Week

Walmart (WMT) shares are in the spotlight this week ahead of the big box retailer’s first quarter results, due before the opening bell on Thursday.

Last month, the retailer maintained its guidance of 3% to 4% sales growth for the first quarter, but cautioned its “range of outcomes” for operating income growth had widened amid tariff uncertainty. However, analysts at Morgan Stanley recently pointed out the retailer sits well positioned to manage import duties given its scale, supply chain advantages, and category mix.

Walmart shares closed little changed at around $97 on Monday, even as the broader market rallied following news that the U.S. and China had agreed to suspend for 90 days the huge tariffs that the countries had imposed on one another. The stock has gained 7% since the start of the year, outpacing the performance of major stock indexes, and have jumped 60% over the past 12 months, boosted in part by the retailer’s ability to attract higher income customers and grow its e-commerce business.

Below, we take a closer look at Walmart’s chart and apply technical analysis to identify major price levels worth watching out for.

Pre-Earnings Consolidation

Since a bear trap below the 200-day moving average emerged on Walmart’s chart last month, the shares have staged a sharp turnaround.

More recently, the stock has consolidated on declining trading volume ahead of the retailer’s quarterly results this week, indicating that larger market participants, such as institutional investors, remain on the sidelines leading into the report.

However, the relative strength index remains above neutral territory, signaling bullish price momentum.

Let’s, point out several major support and resistance levels that investors will likely be watching.

Major Support Levels to Watch

During retracements in the stock, investors should initially track the $90 level. This area may provide support near a horizontal line that connects the early-April peak with the lower range of sideways drift that formed on the chart between late December and mid-January.

The bulls’ failure to successfully defend this major technical level could see the shares drop to around $85. Investors may place buy limit orders in this location near a range of consolidation near the March trough that preceded the last month’s bear trap low.

Important Resistance Levels to Monitor

Bullish price action ahead of the retailer’s quarterly results would likely bring the psychological $100 level into play. The shares may face selling pressure in this area near the upper levels of last week’s sideways trading activity, which also closely aligns with the high of the late-February stock gap.

Finally, a stronger move higher could see Walmart shares climb to around $105. This region on the chart would likely attract significant attention from investors near the stock’s record high set in mid-February.

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As of the date this article was written, the author does not own any of the above securities.