Technical analysis

Week 44 Stock Watch

By Antreas Themistokleous

01 November 2023

This week, the two stocks standing out as worthy of your attention are HD and WMT. Here’s why.

Home Depot, Inc.

Home Depot, Inc. (HD) has experienced notable losses for the quarter, with its share price dropping around 15%. The company is set to release its earnings report for the fiscal quarter ending October 2023 on Tuesday, 14th of November, before market opening. The anticipated consensus EPS is $3.80 (USD), which is a decrease from $4.24 in the same quarter the previous year.

In the past, the company gained momentum, but it lost these gains in recent months. As of 31 August 2023, Home Depot had a positive current ratio of 131%. This ratio indicates its ability to cover current liabilities using its liquid assets. 

However, the company's long-term debt comprises over 50% of its total liabilities. This heavy reliance on debt is concerning, especially with the unpredictable monetary policy landscape and fluctuating interest rates. Moreover, the company's net income has seen a decline throughout 2023. This makes the company a potentially risky addition to an investor's portfolio.

From a technical standpoint, the stock price has found support in the $275-$280 range. While this area, combined with the lower band of the Bollinger bands, has shown strength, the overall picture leans bearish. The 50-day moving average recently dipped below the 100-day moving average, though the Stochastic has rebounded from extremely oversold levels.

Walmart Inc.

Walmart Inc. (WMT) shares have performed well this quarter, rising approximately 2%. The company plans to release its earnings report for the fiscal quarter ending October 2023 on Thursday, 16th of October. The consensus EPS stands at $1.50, consistent with the same quarter of the previous year.

Financially, Walmart presents a mixed image. The current ratio was 83% as of 31 July 2023  and the debt-to-equity ratio was at 50%. This indicates a balanced use of shareholder equity and debt. 

The net income has seen a significant rise of 53.25% year-over-year, though the debt also increased by 23.48% in the same period. Walmart may not be the ideal "dividend heaven" stock, with a dividend yield rate of around 1.38%.

From a technical perspective, the stock price has struggled to surpass the resistance of the 78.6% weekly Fibonacci retracement level. The Stochastic oscillator suggests a potential downward correction in the near future.

However, the 50-day moving average remains above the 100-day moving average, indicating an overall bullish trend. In the short term, the significant technical support level is around $160, with a resistance level at around $163.

Exness offers a seamless trading experience with robust tools and analytics to help you make informed decisions. It is strongly recommended that you first check the HD and WMT charts before committing to any trades.

The Exness Terminal provides real-time insights, ensuring that you stay ahead of market trends. With competitive rates and top-tier customer support, Exness is the ideal choice for trading HD and WMT stocks.

This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.


Antreas Themistokleous
Antreas Themistokleous

Antreas Themistokleous is a trading specialist in Exness. He is a Certified Financial Technician since 2018. As a member of the Society of Technical Analysts, Antreas is implementing advanced use of indicators and patterns to conclude in an action plan for different trading strategies.

Back to all articles