Walmart shares have bucked the trend, moving higher this year after the world’s biggest retailer gave in to pressure to cut costs in a competitive retail environment, including at its UK-owned supermarket Asda. In order to offset last year’s decision to raise its entry-level wage in the US, the world’s biggest retailer has announced the closure of 269 stores and the axing of 16,000 jobs in January.
The chart below shows Walmart shares recovering from a steep downtrend which lasted all of last year. If earnings impress, shares could surpass the October peak around $68 for a possible run at $72.50. An earnings disappointment could see the downtrend set back into motion with a drop towards $61.50 then $57.
Weekly candlestick chart for Walmart, 9/2/16