WalMart WMT Perfectly Straddles the Daily EMAs ahead of Breakout

Aug 17, 2017: 1:28 PM CST

During today’s big sell session, Wal-Mart (WMT) collapsed toward its 50 day EMA target.

However, something interesting happened there which we need to discuss:

Wal-Mart WMT EMAs

Negative divergences and relatively low volume set the stage for a pullback in WMT shares.

Today – on earnings – sellers collapsed the price through the $80.00 support level toward the lower target of the rising 50 day (blue) EMA.

The session low occurred ON the 50 day EMA target … but the session high occurred on another target – the 20 day EMA.

We see a long-legged session with intraday high and low – right now – at Daily EMA levels.

These are perfect swing trading levels to watch, especially if you want to be neutral (not directionally biased).

From the neutral barrier perspective, shares trigger a short-term bullish buy on a break above the 20 day EMA barrier and of course a sell-swing entry beneath it.

Which will happen? Frame your trade in terms of the departure from these daily barriers.



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Corey Rosenbloom, CMT

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