Don't Ignore This Chart!

Attention Wal-Mart Shoppers!

Tom Bowley

Tom Bowley

Chief Market Strategist, EarningsBeats.com

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 of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More