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
