In the previous update on Walmart at the end of January, we saw that the price action of WMT was nearing completion of an ABC correction. Now, about 3 trading weeks later, price has indeed rallied back up and is approaching a critical level of 70.00.Walmart (WMT) Weekly Chart(click to enlarge)The Crossroad:- As WMT approaches 70.00, we can see that price will be testing a previous support pivot.- Also, there will be a falling resistance that is holding the current correction pattern.- Furthermore, a previously broken rising support will be tested around 71.00.- Assuming this week will continue to push towards 70-71, it would be 3 straight bullish weeks.- As we wind down the month, we might see some resistance at this critical crossroad.WMT Daily Chart 2/21(click to enlarge)More Critical Resistance:- The 70-71 area is a key place to anticipate selling. In other words, bears could consider selling here.- A break above 72.50 on the other hand will be needed to truly show a bullish market and therefore encourage more bulls to continue the bullish trend we saw in the first half of 2016. - In the bearish scenario (with price holding under the 70-71 area), we can anticipate a test of the recent low just above 65. The bearish outlook should be limited to the 62-63 area, which is a previously common support pivot.- In the bullish scenario (with price pushing above 72.50), the 80 area could come into play, especially if price action starts to pivot off the 68-70 area as support.Earnings on Tap:- We are expected to hear about earnings soon:According to Nasdaq.com: "Wal-Mart Stores, Inc. ( WMT ) is reporting for the quarter ending January 31, 2017. The supermarket company's consensus earnings per share forecast from the 13 analysts that follow the stock is $1.30. This value represents a 12.75% decrease compared to the same quarter last year. In the past year WMT has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 2.08%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for WMT is 16.10 vs. an industry ratio of 21.50."Read more: http://www.nasdaq.com/article/Sun,%2019%20Feb%202017%2016:00:05%20-0500#ixzz4ZGtQFev2- By the end of the week, let's see if price holds under 70-71 or pops above 72.50. - In any other scenario, we should probably wait until next week to see how WMT trades in this critical juncture on the charts.