For today's chart we've chosen to take a look a Wal-Mart Stores because it has formed a short-term double bottom pattern. As you can see from the chart below, WMT is currently testing the combined resistance of the 200 DMA and the breakout point of the double bottom ($47). We'd expect to see WMT head higher once we see the price close above the 200 DMA.

We've also added the MACD, which is looking like it will cross above the zero line. This bullish signal suggests that the short-term average is about to cross above the long-term and is likely to be used by the bulls as an indication of increased buying pressure.



WMT_021606.jpg
Filed Under:
Tickers in this Article:

comments powered by Disqus
Trading Center