Have you ever wondered what makes a stock suddenly catch fire just before a big earnings report? I’ve been watching the markets for years, and every so often, a company like Walmart steps into the spotlight, drawing the attention of investors and analysts alike. With its earnings report looming on August 21, 2025, Walmart’s stock (WMT) has been making waves, climbing over 5% in a single week. This kind of momentum isn’t just a fluke—it’s backed by some compelling technical indicators that suggest the retail giant could be gearing up for a breakout. Let’s dive into why Walmart is looking so promising right now and what it could mean for investors.
Walmart’s Momentum: A Technical Powerhouse
The stock market can feel like a wild ride, but sometimes the charts tell a story that’s hard to ignore. Walmart’s recent surge has analysts buzzing, and for good reason. The stock has filled a gap from earlier this year, a move that technical traders watch closely. It’s like watching a runner hit their stride after a slow start—WMT is picking up speed, and the momentum is turning heads.
Short-Term Signals Pointing Up
One of the first things that jumps out is the daily MACD (Moving Average Convergence Divergence), a tool traders use to gauge short-term momentum. Right now, it’s flashing bullish signals, suggesting that Walmart’s upward push has some legs. This isn’t just a one-day wonder; the stock’s recent 5% climb shows it’s got the energy to keep moving. I’ve seen stocks rally on less, but when the daily MACD is in play, it’s often a sign that the short-term trend is strong.
Momentum indicators like the MACD can be a game-changer for spotting stocks ready to run.
– Market analyst
What’s more, Walmart’s stock is showing relative strength compared to the broader market. After lagging behind the S&P 500 since April, WMT has reclaimed its 200-day moving average against the index. This is a big deal—it’s like a boxer getting back in the ring after a rough round. The shift suggests Walmart could outperform the market in the near term, which is music to investors’ ears.
Intermediate-Term Strength Kicks In
Zooming out a bit, the weekly MACD is also telling a compelling story. A recent bullish crossover—a fancy term for when the MACD line crosses above the signal line—hints that this rally might have staying power. It’s not just a quick pop; it’s a sign that the intermediate-term trend is turning in Walmart’s favor. For investors, this could mean the stock is ready to sustain its gains, at least until the earnings report shakes things up.
- Daily MACD: Bullish, signaling short-term strength.
- Weekly MACD: Bullish crossover, suggesting longer-term momentum.
- 200-day moving average: Reclaimed against the S&P 500, indicating relative outperformance.
These indicators are like the pulse of the stock, and right now, Walmart’s heartbeat is strong. But as any seasoned investor knows, momentum is only part of the equation—key price levels will play a huge role as earnings approach.
Key Levels to Watch Before Earnings
Earnings season is always a wild card, and Walmart’s report on August 21 is no exception. The stock is approaching a critical resistance level near $105. If it can break through, it could spark a bigger move, potentially hitting a measured move projection of around $115. That’s a tidy gain for a stock as stable as Walmart, and it would mark a resumption of its cyclical uptrend.
On the flip side, support levels are just as important. The 200-day moving average and the weekly cloud model—a technical tool that helps identify support and resistance—converge near $94. This is like a safety net for the stock; if it pulls back, this level could provide a cushion. Knowing these levels is crucial for traders looking to play the earnings report.
| Key Level | Type | Price |
| Resistance | Breakout Point | $105 |
| Support | Safety Net | $94 |
| Upside Target | Measured Move | $115 |
I’ve always found it fascinating how these technical levels act like invisible barriers in the market. They’re not just numbers—they’re psychological checkpoints where buyers and sellers duke it out. For Walmart, clearing $105 could be a game-changer, but a drop to $94 wouldn’t necessarily spell doom.
The Long-Term Picture: A Secular Uptrend
Looking beyond the short-term noise, Walmart’s stock is in a secular uptrend, a fancy way of saying it’s been climbing steadily for years. The monthly cloud model—another technical tool—shows the stock trading above its rising support, which points to continued growth into 2027. That’s a long-term vote of confidence in Walmart’s business model, from its massive retail footprint to its growing e-commerce presence.
A secular uptrend is like a river carving its path—slow, steady, and hard to stop.
– Veteran trader
But here’s the catch: the long-term momentum isn’t as strong as it was earlier this year. The monthly stochastics, which measure overbought or oversold conditions, have cooled off a bit. This suggests that while Walmart’s uptrend is intact, the next leg higher might not be as explosive as 2024’s rally. The stock is also trading well above its secular support, which means it’s a bit stretched. For long-term investors, this could signal a more measured pace of gains moving forward.
Why Walmart Stands Out
So, what makes Walmart such a compelling pick right now? For one, its ability to outperform the S&P 500 is a big draw. After months of underperforming, the stock is showing signs of life, and the technical setup is hard to ignore. The combination of short-term momentum, intermediate-term strength, and a solid long-term trend makes WMT a standout, especially heading into earnings.
- Relative strength: Outpacing the broader market.
- Technical breakout: Potential to clear $105 resistance.
- Long-term stability: Secular uptrend supports growth into 2027.
Perhaps the most interesting aspect is how Walmart balances stability with growth. It’s not a flashy tech stock, but its consistent performance and massive scale make it a cornerstone for many portfolios. As someone who’s followed the market for a while, I can’t help but admire how Walmart keeps chugging along, even in turbulent times.
Navigating Earnings: What to Expect
Earnings reports are like a high-stakes poker game—nobody knows exactly what cards will be dealt, but the clues are in the charts. Walmart’s technical setup suggests it’s going into the August 21 report with a strong hand. If the company delivers solid results, the stock could easily push past $105 and aim for that $115 target. But if the report disappoints, the $94 support level will be critical to watch.
Investors should also keep an eye on Walmart’s guidance. A strong outlook could fuel the rally, while cautious comments might trigger a pullback. Either way, the technical indicators provide a roadmap for navigating the volatility. It’s like having a GPS for the market—imperfect, but incredibly useful.
A Word of Caution
No stock is a sure thing, and Walmart is no exception. While the technicals are bullish, the stock’s stretched position above its secular support means a sharp correction isn’t out of the question. Earnings surprises, macroeconomic shifts, or even broader market sell-offs could throw a wrench in the rally. That’s why risk management is key—never bet the farm on one stock, no matter how strong it looks.
Investment Rule of Thumb: 60% Research 30% Timing 10% Luck
In my experience, the best investors are the ones who respect the market’s unpredictability. Walmart’s setup is exciting, but it’s not a blank check. Keep those support and resistance levels in mind, and don’t get caught up in the hype.
Final Thoughts: Is Walmart a Buy?
Walmart’s stock is firing on all cylinders as it heads into its August 21 earnings report. The technical indicators—from the daily MACD to the weekly cloud model—paint a picture of a stock ready to run. With a potential breakout above $105 and a long-term uptrend that stretches into 2027, WMT is a name worth watching. But as with any investment, it’s not without risks. The market loves to throw curveballs, and earnings season is no exception.
For me, the real allure of Walmart is its blend of stability and opportunity. It’s not the sexiest stock out there, but it’s got a knack for delivering when it counts. Whether you’re a short-term trader eyeing that $115 target or a long-term investor banking on the secular uptrend, Walmart’s technical setup is hard to ignore. So, will it keep climbing? Only time will tell, but the charts are definitely whispering “buy.”
What do you think—will Walmart’s earnings spark a breakout, or is this rally running out of steam? The market’s always full of surprises, but one thing’s for sure: WMT is worth keeping on your radar.
