Today, leading retail stock Walmart Inc (NYSE:WMT) declined sharply after reporting earnings. The stock traded lower by $10.67 to $94.11. Many traders were asking me if they should buy WMT stock on this dip and the answer is no!
This stock will need a few weeks to settle out after a major fall like it had in today's session. The stock still has a major gap fill around the $90.00 area that will likely need to be filled and possibly more downside to come. Traders and investors should watch the $81.00 area for major chart support. This is a level where the stock broke out in October 2017. Often, prior breakout levels will serve as major chart support when retested. I will be waiting on this important level before buying WMT stock.
