Wal-Mart Bullish Engulfing Formed

By Traders Huddle | December 01, 2012 AAA

New York, November 29th (TradersHuddle.com) - Shares of Wal-Mart Stores, Inc. (NYSE:WMT) ended the trading session higher by $1.02 or 1.47% from its previous close. Wal-Mart's price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.

Wal-Mart Stores, Inc. (NYSE:WMT) operates discount stores, supercenters, warehouse membership clubs, and neighborhood markets. The Company's stores sale products like general merchandise, apparel, electronics and groceries. Wal-Mart operates the warehouse membership stores under the Sam's Club name, where the company sell assorted merchandise including its private label products. Wal-Mart was founded by Sam Walton in 1945 and is based in Bentonville, Arkansas.

Wal-Mart's recent stock range was formed by a trough where calculated support was defined at $67.66 and by a peak that established the resistance level at $75.19. This range could be used by traders managing their positions.

Traders wanting to establish a position in Wal-Mart or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.

The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration:

{loadposition googlink}

Related Analysis
  1. Time To Take Profits On These 4 Rallying Stocks?
    Chart Advisor

    Time To Take Profits On These 4 Rallying Stocks?

  2. Dow, S&P 500 Little Changed Despite Upwards 3Q GDP Revision
    Stock Analysis

    Dow, S&P 500 Little Changed Despite Upwards 3Q GDP Revision

  3. Dow, S&P 500 Little Changed Despite Upward 3Q GDP Revision
    Stock Analysis

    Dow, S&P 500 Little Changed Despite Upward 3Q GDP Revision

  4. This Leveraged ETF Is For China Bulls
    Stock Analysis

    This Leveraged ETF Is For China Bulls

  5. Good News: GDP Revised Higher - Ahead of Wall Street
    Stock Analysis

    Good News: GDP Revised Higher - Ahead of Wall Street

Trading Center