Retailers Face Key Technical Setups Amid Rising Interest Rates
The recent rise in U.S. interest rates is putting pressure on consumer spending habits, and three major retailers - Walmart (WMT), Costco (COST), and Amazon (AMZN) - are facing key technical setups as a result.
According to technical analysis, WMT is attempting a pre-market rebound to 106.76 below the 50 EMA (110.86) and 200 EMA (114.20). This comes after Walmart's earnings call in mid-August, which has yet to be fully reflected in the market.
COST, on the other hand, is poised to jump at the open, with pre-market trading indicating a potential rebound. The company's earnings call is scheduled for September 24th, and investors who are short Costco may be looking to cover their positions ahead of time.
AMZN, however, looks soft as it tests the 0.618 Fibonacci level, trading below the 50 EMA (256.13) and above the 200 EMA (242.47). If Amazon breaks above the 50-day EMA, technical traders may start buying again.