- Walmart (WMT.US) trades near all-time high
- Amazon (AMZN.US) bounces off the support at $1740
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FedEx (FDX.US) eyes break above the downward sloping trendline
Black Friday - one of the busiest moments of the year for retailers is looming large. Big international networks as well as small retailers flood clients with enormous number of sales on the last Friday of November. Discounts of 40-50% are common so one it should not come as a surprise that clients often postpone their purchases until this day. Moreover, Black Friday is held less than a month before Christmas so it is a perfect opportunity to buy gifts at huge discounts. The US stock markets will be closed tomorrow for Thanksgiving but stock market session will be held on Friday. However, NYSE and Nasdaq will close a bit earlier - at 6:00 pm GMT. In our special edition of “Top 3 charts of the week” we will take a look at three companies that are especially busy on Black Friday - Walmart (WMT.US), Amazon (AMZN.US) and FedEx (FDX.US)
Walmart (WMT.US) trades near all-time high
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Open account Try demo Download mobile app Download mobile appWalmart, the largest American supermarket chain, is the first company we will take a look at. The stock is trading near all-time high therefore solid performance on Black Friday could encourage investors to boost their positions. Taking a look at the daily chart, one can see that the stock is trading at the 50-session moving average. Bounce higher could start there with a potential range of the upward impulse pointing to $127.6 handle - the 161.8% exterior retracement of the recent correction move. On the other hand, a break below the next moving average - 100- session (blue line) - could call for a realization of the bearish scenario. Should it happen, the price could drop to as low as the lower limit of the Overbalance structure marked with a green rectangle.
WMT.US D1 interval. Source: xStation5
Amazon (AMZN.US) bounces off the support at $1740
Amazon, the largest online retailer in the world, is the next company we will analyze. Looking at D1 interval, one can see that the stock managed to bounce off the $1740 handle, which is marked with a lower limit of the Overbalance structure. Additionally, the price broke above the 50-session moving average, what could be a sign for buyers to become more active. A break above the 100- session moving average will be additional confirmation that the stock is regaining investors’ appeal and could see the upward momentum increase. In such a scenario, traders should focus on the strong supply zone at $2000 as a potential target.
AMZN.US D1 interval. Source: xStation5
FedEx (FDX.US) eyes a break above the downward sloping trendline
Last but not least, let’s take a look at FedEx (FDX.US), the international delivery company that enjoys significant increase in demand for its service on every Black Friday. From a technical point of view, the stock is trading above the 50- and 100-session moving averages and within striking distance of the downward sloping trendline. A break higher could be a signal for bulls that trend reversal is underway. In such a scenario, resistance levels to watch can be found at $176 and $198 handles.
FDX.US D1 interval. Source: xStation5
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