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

You May Also Like

Related Analysis
  1. Stock Analysis

    Celgene's $1 Billion Deal to Fight Cancer

  2. Stock Analysis

    The Fall of the Chinese Stock Exchange and its Impact on Alibaba, Youku Tudou, and ...

  3. Stock Analysis

    Obamacare Affirmed - What's the Investing Impact?

  4. Stock Analysis

    Sarepta Therapeutics One Step Closer to Drug Approval

  5. Stock Analysis

    Lions Gate to Bring Iconic Game to the Big Screen

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!