Walmart stock hits record high for second day in a row – keep an eye on these price levels

Shares of Walmart (WMT) hit an all-time high on Wednesday, adding to gains that followed news yesterday that the big-box retailer has become the latest company to team up with ChatGPT developer OpenAI.

The collaboration will allow shoppers to discover and purchase items via instant checkout directly through the AI ​​platform, the retailer said, adding that it also plans to enable conversational interactions with ChatGPT in the search bar on its websites.

Walmart shares rose nearly 2% to just over $109 on Wednesday, accelerating the Dow Jones Industrial Average’s advance for the second straight day. The stock is up 21% so far this year, outpacing broader market returns, as the retailer benefits from strong e-commerce sales and demand across income levels amid economic uncertainty.

Below, we break down the technical details on Walmart’s chart and identify crucial price levels that investors are likely to watch.

Symmetrical triangle breakout

Walmart shares made a decisive breakout from a symmetrical triangle on Tuesday, laying the groundwork for a continued move higher.

Importantly, the jump occurred in above-average trading volume, indicating compelling buying from larger market participants. Meanwhile, the RSI has crossed into overbought territory, although the index is still below its previous highs, providing room for the stock to explore higher prices before consolidation.

Let’s use technical analysis to forecast a near-term upside price target on the Walmart chart as well as identify support levels worth watching during potential corrections.

Measured upward movement of the near-term target price

To project a near-term upside price target above a stock’s record high, investors can use the measured movement technique, a study that analyzes known chart patterns to predict future price movements.

When applying the analysis to the Walmart chart, we calculate the distance between the two trend lines of the symmetrical triangle near the wider section and add this amount to the breakout point of the pattern. In this case, we add $10 to $103, which projects a target price of $113.

Crucial support levels are worth watching

The first lower level to watch is around $105. This area is likely to provide significant support near the prominent peaks that formed on the chart in February, August, and September.

Closing below this price could send the stock falling to the $100 level. Investors may look for buying opportunities in this location near the psychological round number and the trend line connecting a range of corresponding trading activity that extends into the stock’s February gap.

Finally, further selling could take the price down to the $96 level. Walmart shares could find support in this area near a series of highs and lows on the chart extending between December and August.

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As of the date of writing this article, the author does not own any of the securities mentioned above.