Dow component Walmart Inc. (WMT) is testing support in the 130s for the sixth time ahead of Thursday’s pre-market release, when the company is expected to post a profit of $1.49 per-share on $150 billion in revenue. If met, earnings-per-share (EPS) will mark a modest increase compared to the same quarter last year. A breakdown will expose a decline into the March 2021 low at 126.28, in turn completing a 19-month topping pattern. WMT buying interest has taken a major hit since August 2021, undermined by rising inflation that should lower profit margins.
SPDR Gold Trust (GLD) rallied to a three-month high on Friday, fueled by the twin tailwinds of rising inflation and growing fears of a Russian invasion. The buying spike lifted the yellow metal into 13-month symmetrical triangle resistance, setting up a potential rally that would mark the next leg of an 11-year cup and handle pattern. A breakout could trigger an historic uptrend, lifting the fund to 300 and the futures contract to 3,000.
Advanced Micro Devices Inc. (AMD) traded below 100 for the first time since October in January and bounced, gaining more than 30% into last week’s reversal at 50-day moving average resistance. The turnaround carved a wide range distribution bar on Friday, dumping the chip stock below the 200-day moving average. The stage is now set for a test at last week’s low that could yield a downdraft into strong support in the low 90s.
NVIDIA Inc. (NVDA) earnings on Wednesday will impact AMD as well, with the chip giant expected to post a profit of $1.22 per-share on $7.43 billion in earnings. If met, EPS will mark a 60% decline in profit compared to the same quarter last year. The stock has struggled so far in 2022, posting a 19% loss-to-date, and is testing 200-day moving average support for the first time since March 2021. Price action at and above the psychological 200 level in coming sessions will test the staying power of long-term bulls.
Shiba Inu (SHIB) has traded well in recent sessions, rallying more than 30% to a six-week high. The rally began at the .786 Fibonacci retracement level of the September into October uptrend, a high odds turning point for steep corrections. Weekly relative strength readings have flipped into buy cycles, predicting bulls will control the ticker tape through quarter’s end. A monthly sell cycle could then resume control, forcing the crypto into a test of lower price levels.
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Disclosure: the author held SPDR Gold Trust in a family account at the time of publication.