Is Walmart Stock About To Break Out?

Shares of Walmart Inc. WMT have crashed into a wall of resistance around the $143.50 level. This could put a top on the price, at least temporarily.

Resistance is a large concentration of investors trying to sell their shares at the same price. At resistance levels, there is more supply than demand. This is why rallies end when they reach them and tend to be followed by a selloff. This occurred with WMT in May. Now the shares have reached this important level once again.

If they trade at a higher level, it will mean the sellers who created the resistance are gone. They have finished or canceled their orders. With this supply out of the way, buyers will need to pay higher prices to acquire shares. This could force a rally.

But if WMT doesn’t break through after a few days, there’s a good chance it starts to trend lower like it did the last time it hit this resistance.

Photo: courtesy of Walmart.