Walmart Inc.
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High Basing Pattern as Wal-Mart Takes Market Share

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It's hard to say which traditional big-box is doing a better job adapting to the digital age: Wal-Mart Stores or Target. Both have successfully used online strategies to keep shoppers in their brick-and-mortar locations. That's helped avoid the kind of painful downsizing sweeping other retailers.

It's paid off recently for WMT, which beat profit estimates all four quarters in 2019. The shares got a little ahead of themselves the last time it reported on November 14, resulting in five weeks of consolidation.

During that time WMT formed a high basing pattern, or a very tight cup-and-handle. The December low of $117.42 was just slightly higher than the late-October low of $116.83. Plus, it held the 50-day SMA.

Fundamentals in WMT also remain healthy, with observers seeing the potential for its online grocery push to keep driving market share.

In conclusion, few people view WMT as a "growth" stock. But it's starting to act like one. And now it has a cup-and-handle, the classic growth-stock pattern from William O'Neill's classic How to Make Money in Stocks.

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