Swing Trade Idea (WMT) – May 7, 2021
Our bullish trade for Friday, May 7th is Walmart Inc (WMT). WMT is part of the Consumer Staples Sector (XLP). XLP has experienced a 2.4% gain in the last month and its 1M trend turned bullish on April 29th.
WMT’s 1M and 6M trend turned bullish on April 29th and has recently pulled back to an area of support and rebounded with strong momentum with more upside expected. With a technical score of 2 (out of 10), WMT is a weak stock stock that will likely reverse higher from these levels.
As a stop loss, if WMT were to trade below $139 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $5.10.
