Walmart has been trading sideways recently, consolidating inside a pennant formation marked with blue trendlines. This pattern reflects a period of indecision, and we’re now approaching the breakout point — a move that will define the next direction.
Beneath the pennant, there are two key horizontal support levels marked with pink lines, which have held strong so far. This layered support creates a solid floor, making a breakout to the downside less likely and potentially more difficult to sustain.
Given the broader bullish bias in equities and the general tendency of prices to move in the direction of least resistance, a breakout to the upside appears more probable. Such a move would trigger a clean technical buy signal.
A breakout to the downside, while possible, would have to contend with those two horizontal supports, which means any bearish move is likely to be choppy and harder to maintain.