Don't Ignore This Chart!

Attention Wal-Mart Shoppers!

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Wal-Mart Stores (WMT) has been under tremendous selling pressure since it topped at an all-time high near 90 back in early 2015.  The selling began after a long-term negative divergence printed during the second week of the year.  That's a sign of slowing momentum on the buy side and WMT fell into a six month downtrend on the heels of it.  Volume trends have remained on the bearish side, but a hammer printed on Wednesday of last week to suggest a possible reversal was at hand.  That, coupled with the long-term POSITIVE divergence now in play, makes WMT a much more palatable trade on the long side.  Be careful on a close back below 70.00.  Otherwise, WMT may have found a bottom just as we head into the second half of the year.  Check out the chart:

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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