WalMart WMT Perfectly Straddles the Daily EMAs ahead of Breakout
Thu, Aug 17, 2:51 PM ET, by Corey Rosenbloom
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:
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.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
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Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
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