One of the companies that benefited the most from the pandemic conditions just made a surprise announcement – a positive for Walmart share price. Not that the company’s share price needed some help – it trades at all-time highs anyways.
Drive-In Theaters at Walmart
Walmart announced drive-in theaters at over 160 locations throughout the United States. Many would wonder why Walmart would do such a thing. But a close look at the potential impact on its business more than justify it for at least a couple of reasons.
First, the movie-watching industry suffered a big blow during the COVID-19 crisis. Business at pre-COVID-19 levels will not happen anytime soon. Hence, with its decision, Walmart attempts to bit from the industry’s potential.
Second, the move brings people close to Walmart stores. Therefore, targeting an increase in sales.
Moreover, the drive-in has deep roots in American culture. Hence, it brings Walmart close to its customers and increases brand awareness.
What is not to like on such an announcement? Family fun in the Walmart parking lot!
Walmart Share Price Ready to Break Higher
Walmart share price hovers at all-time highs for a while now. In doing so, it formed a bullish triangular pattern.
Some will call it an ascending triangle. Some other technicians will call it a running triangle. Regardless of it, it represents a continuation pattern having a measured move of above $30.
The standard interpretation of such a triangle is that the price to follow its breakout should travel more than the longest segment in the triangular pattern. In other words, the price target on a break above the $135 should be a minimum $165.
For the stop loss, think of the previous higher low part of the bullish trend. $127 should do the trick as it becomes the last higher low, should the Walmart share price break the upper edge of the triangle. The result: a risk-reward ratio that exceeds 1:3.