Walmart, Inc. (NYSE:WMT) broke past the $150-$152 zone on April 7. The level has held back prices since September 2020. The breach of the critical resistance zone confirms a developing bullish move for the value stock and sets it to hit fresh all-time highs.
The stock has been registering gains since mid-March and is building on that momentum. The first news that moved the stock price was an announced dividend increase on February 17. The retailer said it was boosting its quarterly dividend by 56%, which effectively matches the industry standard of 1.4%.
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Other bits of news this month include a reported increase in the IPO of Walmart’s Flipkart to between $60 billion and $70 billion from the previous $50 billion. Yet, on April 7, Walmart said it was seeking to raise its driver’s pay to between $95,000 and $110,000 a year, from the previous $87,000.
The news builds on the fourth quarter of 2022 results, which indicated that net sales exceeded $150 billion. The sales exceeded the previous quarter by just 0.5%, but this was affected by $10.5 billion of divestitures. The recent surge in Walmart stock builds on these recent developments.
Walmart heading to new heights after a breakout at $150-$152 resistance
Technically, Walmart is bullish, with the moving averages supporting the price, which is now above the resistance zone. At the current price of around $157, there is no end in sight for WMT, with a further upsurge likely. However, consider buying on a retracement towards the $150-$152 area as the stock looks currently overvalued at 77 RSI.
Summary
Walmart will go higher after breaking past the resistance. A range of developments in recent weeks has supported the price. Buy the stock on a retracement towards the $150 support zone.
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