WMT, TGT and COST Forecasts – Retailers Continue to Look for Higher Levels

WMT Technical Analysis

Walmart looks like it is going to open down a bit during the trading session on Thursday as we are looking at this through the prism of trying to find value. If we were to drop from here, the 50-day EMA sitting right around the $127 level could offer support.

Keep in mind that the earnings call is on the 21st, so a week from now. The next week could be choppy, but it’s clear that Walmart has more of an upward bias and has for quite some time. So, with that being the case, I am looking at these little pullbacks as potential buying opportunities.

TGT Technical Analysis

Target looks like it is going to bounce a bit after forming a nice hammer during the previous session. What’s interesting is that the market had formed a massive negative candlestick, gapped up on Wednesday to just hang out and now it looks like we’re going to do the same thing. In other words, the downward pressure is starting to fail.

We have premarket earnings on Wednesday of next week for Target, that will be important obviously, but it certainly looks like buyers are coming in to try to pick it up.

COST Technical Analysis

Finally, we have Costco, which is a little bit soft in premarket trading, but really, at this point, we are pulling back from a recent breakout, and I think Costco is going to continue to be a strong stock.

The $1,000 level would be an obvious support level as the 50-day EMA is sitting right there as well. The $1,050 level above is your short-term barrier, but if we were to break above there, then I think you will get more FOMO jumping into the market. Costco has been a grinding but positive stock for some time and piercing the recent highs only adds more credence to the idea that it will continue to march to the upside.

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