Are you watching for a sale price at WalMart (WMT)? (February 26, 2016)
WMT
I want to look at Wal-Mart ( NYSE:WMT ) today, here’s why: This stock, frankly, it’s in a new uptrend. This took it really, really bad for 2015, not the best year for Wal-Mart ( NYSE:WMT ). But since that time, look at the configuration of this stock: Low, a bunch of higher lows that give you this kind of trendline, the 50-day moving average had been above, been resistance. After the stock broke through, it had one, two, and then three tests of support, successful tests of support at the 50-day moving average. Finally it broke through the 200-day moving average, which had been resistance.
So what happened on Friday? My bet is, this is an opportunity. A big reversal, but volume wasn’t heavier than average. I would suggest watching this stock. There are a couple different key levels here. First, the 200-day moving average, which WAS the breakout level. So the 200-day moving average is an important level. If the stock starts bouncing here, that may be all you get and you want to buy some stock. I would look for a bit more of a pullback to the 50-day moving average, which next week will be closer to 65.00.
So the way to really trade this, in my view is, first look at this, between where the stock closed and the 50-day moving average, is over 3 percent down. So you want to be trying to get the best entry that you can on this. I hate buying a stock at one level, assuming it’s going to hold, and then it doesn’t, and now you’re wondering if you should buy more or if you should ditch the stock that you have. So don’t do that. This stock actually trades pretty regularly, it’s in a defined pattern. Let the stock pullback, even just set an alert, I’ll just set it here on my personal software, $65.00, I just want to know when the stock hits $65.00. This will flash me a signal and then I will be able to watch it for the bounce and if all goes well, if the stock does bounce, that’s when I’m making this trade.
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