For today's chart we've chosen to take a look at
Wal-Mart Stores Inc (NYSE:
WMT) because it is trading near the resistance of its confined trading range. As you can see from the chart below, this stock has traded between $42 and $51 since early 2005.
Range-bound traders normally look to sell a stock near an influential level of resistance ($51) and to buy it near major levels of support. It would not be surprising to see these traders bet on a move toward $42 since the barrier has prevented a move higher many times over the past few years.
It is importnant to note that
Breakout traders will want to be patient before they take a position to ensure a move higher is valid and that it will be sustainable.
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