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
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.