WMT extended the rebound off the 49.94 pivot low (23 Sept 2011) to break above the 11-month bear channel resistance (from 57.90/56.03 highs/50.97/48.31 lows) on the weekly chart before consolidating. With the weekly trend studies still constructive, a higher swing low is anticipated to form above 49.94 ahead of a return through 56.39 (Resistance 1). Further strength above the latter would allow bulls to retest 57.90 (Resistance 2). An upside break there would confirm a base in place and initiate the next upleg towards 59.23 (12 Dec 2008 high, Resistance 3) which guards the 3-year range high at 63.85 (19 Sept 2008 peak, Resistance 4).
However, a break below 49.94 (Support 1) would delay and reopens 48.31 (Support 2) near the bear channel support. Only a downside break there would avert the upside and expose the key 3-year range low at 46.25 (06 Feb 2009) for a retest (Support 3).
Trading Indication:
Short-term: Buy at 51.00 or lower;
Target at 57.90 and higher;
Stop Loss at 50.00 (2.0%)
Long-term: Possibly sell higher
However, a break below 49.94 (Support 1) would delay and reopens 48.31 (Support 2) near the bear channel support. Only a downside break there would avert the upside and expose the key 3-year range low at 46.25 (06 Feb 2009) for a retest (Support 3).
Trading Indication:
Short-term: Buy at 51.00 or lower;
Target at 57.90 and higher;
Stop Loss at 50.00 (2.0%)
Long-term: Possibly sell higher
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