Walmart Gains 10%, And Market Cycles Point Higher

The world’s largest retailer Walmart Inc WMT moved 10 percent higher Thursday morning after posting second earnings that beat analyst estimates. The company reported earnings per share of $1.29 and total revenue of $128 billion, above Wall Street expectations of $1.22 and $126 billion, respectively. Walmart also raised fiscal year guidance from $4.75-5.00 to $4.90-5.05, as well as estimates for total sales and same store sales.

“We had a great quarter with strong results across the business. We're aggressively rolling out grocery pickup and delivery in the U.S., and recently announced omni-channel initiatives in China and Mexico,” explained CEO Doug McMillon.

In analyzing the market cycles for Walmart, we can see that it is still in the rising phase of its current cycle. It gapped through our intermediate resistance and now looks much healthier, after the previous cycle turned out somewhat bearish. Our near-term projection is $104, which is marked by the 76.8% Fibonacci retracement. 

Walmart Stock Chart with Weekly Bars

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