WMT, COST and AMZN Forecast: Higher Rates Test Consumers

WMT Technical Analysis

One of the first places I’ll look at is Walmart. Walmart looks like it’s going to jump a little bit in pre-market trading as interest rates are rising in America, putting perhaps some downward pressure on the idea that consumers will be out there consuming.

The Walmart gap from the earnings call in the middle of August still has yet to be filled. That, in theory, has the market looking to the 200-day EMA if we do, in fact, try that, right around the $114.20 level.

COST Technical Analysis

Costco looks like it’s going to jump at the open as well. As pre-market trading starts to focus on the value end of the play, I anticipate that, with higher rates, it does make a certain amount of sense that these wholesalers may attract a little bit of attention.

The earnings call is on the 24th, so we’ve got about 2 weeks for that. In the meantime, those who are short Costco going into that earnings call could possibly be looking to cover those shorts as well. So, it does set up for some type of movement.

AMZN Technical Analysis

Amazon looks a little soft. It’s the outlier, as it’s going to open up right around the 61.8% Fibonacci retracement of that massive move after earnings. Higher interest rates and, of course, trade friction really hit Amazon, as so much of it comes from overseas.

That being said, this is an area that technical traders may be watching for a bounce, so it certainly is on my radar. If it breaks above the 50-day EMA, I might be tempted to start buying again.

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