Analysing the Spike in Volatility on the Walmart (WMT) Share Price Chart

On Thursday, the US retail giant reported its quarterly results — which turned out to be broadly better than expected. While total revenue was roughly in line with analysts’ forecasts, earnings per share came in higher at $0.61 versus the expected $0.57.

At the same time, Walmart CEO Doug McMillon stated on Thursday:
"We will do everything we can to keep our prices as low as possible. But given the scale of the tariffs, even at reduced levels, we won't be able to absorb all the pressure, considering the reality of tight retail margins."

This statement may have raised concerns among market participants about the company’s future earnings, contributing to Friday’s drop in the share price to $92.

It also drew the attention of the US President. On Saturday, Donald Trump said that Walmart (WMT) should “swallow the tariffs” instead of blaming them and raising prices.

In response, Walmart reiterated that it will keep prices as low as possible for as long as it can — which has always been the company’s approach.

Technical Analysis of the WMT Stock Price Chart

Looking at the broader market context, we can see that price fluctuations formed a narrowing triangle in late April — a sign that buyers and sellers had reached some agreement around a fair value of approximately $95.50.

In early May, sentiment shifted in favour of the bulls, with this level acting as support (marked by an arrow).

The earnings release triggered a spike in volatility — the ATR indicator is now at a one-month high. The Walmart stock price extremes seen at the end of last week suggest two key levels, roughly equidistant from the $95.50 axis:

→ resistance around $99 (reinforced by the psychological level of $100);
→ support around $92.

Given the above, it is reasonable to suggest that once the market has digested the news, price movements may calm down again. In that case, we may well see another narrowing triangle form on the WMT chart — slightly above the previous one.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.