Walmart Stock Hits Record High for Second Straight Day—Monitor These Price Levels

Walmart (WMT) shares hit a fresh all-time high Wednesday, adding to gains that followed news yesterday the big box retailer had become the latest company to team up with ChatGPT developer OpenAI.

The retailer said the collaboration will allow shoppers to discover and buy items via instant checkout directly through the AI platform, adding that it also plans to enable conversational interactions with ChatGPT in the search bar on its websites.

Walmart shares rose nearly 2% to just over $109 on Wednesday, pacing Dow Jones Industrial Average advancers for the second straight day. The stock has gained 21% so far this year, outpacing broader market returns, as the retailer has benefitted from strong e-commerce sales and demand across income levels amid economic uncertainty.

Below, we break down the technicals on Walmart’s chart and identify crucial price levels that investors will likely be watching.

Symmetrical Triangle Breakout

Walmart shares staged a decisive breakout from a symmetrical triangle on Tuesday, laying the groundwork for a continuation move higher.

Importantly, the jump occurred on above-average volume, suggesting conviction buying from larger market participants. Meanwhile, the relative strength index crossed into overbought territory, though the indicator remains below its prior peaks, providing room for the stock to explore higher prices before consolidating.

Let’s use technical analysis to project a bullish near-term price target on Walmart’s chart and also identify support levels worth watching during possible retracements. 

Bullish Measured Move Near-Term Price Target

To project a bullish near-term price target above the stock’s record high, investors can use the measured move technique, a study that analyzes recognizable chart patterns to forecast future price movements.

When applying the analysis to Walmart’s chart, we calculate the distance between the symmetrical triangle’s two trendlines near their widest section and add that amount to the pattern’s breakout point. In this case, we add $10 to $103, which projects a price target of $113.

Crucial Support Levels Worth Watching

The first lower level to watch sits around $105. This area would likely provide significant support near prominent peaks that formed in the chart in February, August and September.

A close below this price could see the shares retreat to the $100 level. Investors may seek buying opportunities in this location near the psychological round number and a trendline that links a range of corresponding trading activity extending back to the stock’s February gap.

Finally, further selling may trigger a decline to $96. Walmart shares could find support in this region near a series of peaks and troughs on the chart stretching between December and August.

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As of the date this article was written, the author does not own any of the above securities.