WALMART BULLISH AFTER REPORTS OF HIKE IN PRODUCT PRICES
Walmart is currently trading at $96.13-higher by 0.42% as compared to the previous closing. Earlier on Friday the stock was down 0.2% in Pre-market trading but has recovered after the opening bell. Walmart fell on Wednesday after Bloomberg reported that Amazon is considering an expansion of its cashierless AmazonGo stores and aiming to open as many as 3,000 nationwide by 2021
According to a letter the company wrote to U.S. Trade Representative Robert Lighthizer two weeks ago and seen by Reuters on Thursday, Walmart said that it may hike prices of products if the U.S. Government imposes a tariff on Chinese imports. The retailer further added that the tariff would impact prices of everything from food products to beverages and personal care items. Walmart included gas grills, bicycles, Christmas lights and bicycles in its list of consumer products that could be affected by the tariffs.
On the technical front, the RSI is currently at 58.85% and suggests that the market can move in the upward direction. The %K has crossed the %D from below to the upside at 21.50% and suggests that the market may head upwards. The Current Price is above the MA5.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 95.95 TAKE PROFIT AT 96.45 STOP LOSS AT 95.70