WALMART EARNINGS ON SCHEDULE-MARKET LOOKING MIXED
Walmart is scheduled to report its earnings before the market open on Thursday. The closing price of Walmart on Tuesday was $90.80 and had gained 1.35% for the day.
Walmart has reported solid fiscal first quarter results as both EPS and revenues were better than market expectations. Walmart has beaten earnings expectations 10 of the last 11 quarters. Walmart has exceeded revenue expectations for the last four quarters. According to market sources, Earnings per share will be around $1.22.
On the technical front, the RSI is currently at 65.46% and suggests that the market can move in the upward direction. The %K has crossed the %D from below to the upside at 89.95% and suggests that the market is currently in Overbought zone. The current market price is above the upper band of the Bollinger bands. As the market is above the Bollinger bands and in overbought zone, a reversal in trend could be possible from that level. So trading can be done with tight stop loss and profit targets.
Scenario 1 LIMIT BUY AT 89.00 TAKE PROFIT AT 90.50 STOP LOSS AT 88.25 (Value /Contrarian Based)
Scenario 2 LIMIT SELL AT 92 TAKE PROFIT AT 90.50 STOP LOSS AT 92.75 (Technical Based)