Walmart Offers Mixed Technical Signals

Walmart Stores Inc. (WMT) made a quick turn to the upside at the end of January. Since early June WMT has gaped lower and recently has made two gaps to the upside. Let's look closer at this bipolar-like movement in the share price and see what it might foreshadow.

In this daily chart of WMT, below, we can we can see the late January low and the subsequent rally. Along the way higher there were a couple corrections, as in March and May. These were mild/shallow and look like buying opportunities in hindsight. The strength quickly turned to weakness in June, when WMT gaped below the cresting 50-day moving average line. The On-Balance-Volume (OBV) line made a January-March double bottom and rose until late May. When prices of WMT made a new high in early June the OBV line failed to match it and then the line weakened. On the plus side, as WMT made a lower low from June to July the momentum study made a higher low....188 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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