There are a handful of watchlist names that working on similar setups to this one in WMT 0.00%↑ ($PLTR notably comes to mind), but I’m going to take them individually for now.
Markets bouncing today, but with DIA 0.00%↑ being the lone major index back above its 200 day moving average ($SPY is close), we have to be mindful that this may be little more than a countertrend bounce within this pullback we’ve seen for the past 6 weeks or so.
On to WMT 0.00%↑ -
It’s been basing over the past 2 weeks, at a level just above its 200 day moving average. It’s not completely dissimilar from the price action highlighted within the red circle, with the important distinction being the 200 day right below. The risk reward setup is favorable here against that 200 day. If the market has de-risked enough, setups such as these provide great longer term entry points. And if it hasn’t, the trade is going to be over pretty quickly. For example, the unfilled gaps in this WMT 0.00%↑ chart would be viable downside targets on a breach of the 200 day.