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Wal-Mart: Be Careful Heading Into Thursday's Earnings

Published 08/15/2017, 12:26 AM
Updated 07/09/2023, 06:31 AM
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Retail has been ugly. Stocks like JC Penney Company Inc Holding (NYSE:JCP) that were already trading at multi-year lows fell sharply on earnings. In comes Wal-Mart Stores Inc (NYSE:WMT), trading near 52 weeks highs and reporting Thursday. Is Wal-Mart Stores Inc different?

The bottom line is this. At 52 week highs, Wal-Mart Stores poses a ton of risk for an investor holding into earnings. They somehow must have a stellar retail quarter, avoiding all the havoc that every other retail company is facing. In addition, there is a trend line on the daily stock chart that shows Wal-Mart is into major resistance. This adds credence to being extremely careful and even bearish on Wal-Mart Stores going into earnings.

WMT Daily Chart

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