Walmart has squeezed into a tight range after a big drop in the spring. Now some traders may be looking for a potential breakout.
The main pattern on today’s chart is the falling trendline along the highs of April, August and September. WMT remained consistently below this resistance until yesterday.
Second is the $128 level, where prices bounced in late September and early October. If these turn into monthly lows, they could represent a potential double-bottom on the weekly chart.
Speaking of the weekly, WMT just completed a bullish inside week.
Next, Tuesday’s positive close established prices back above the 50-day simple moving average (SMA).
This chart includes our 2 MA Ratio custom script and Bollinger Bands Width. 2 MA Ratio shows that the 8-day exponential moving average (EMA) has crossed above the 21-day EMA, which could be a positive sign for short-term momentum.
Bollinger Bands Width also shows a tight volatility squeeze as WMT compressed into a narrowing range. That may create the potential for increased movement if prices start to expand.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The main pattern on today’s chart is the falling trendline along the highs of April, August and September. WMT remained consistently below this resistance until yesterday.
Second is the $128 level, where prices bounced in late September and early October. If these turn into monthly lows, they could represent a potential double-bottom on the weekly chart.
Speaking of the weekly, WMT just completed a bullish inside week.
Next, Tuesday’s positive close established prices back above the 50-day simple moving average (SMA).
This chart includes our 2 MA Ratio custom script and Bollinger Bands Width. 2 MA Ratio shows that the 8-day exponential moving average (EMA) has crossed above the 21-day EMA, which could be a positive sign for short-term momentum.
Bollinger Bands Width also shows a tight volatility squeeze as WMT compressed into a narrowing range. That may create the potential for increased movement if prices start to expand.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
