Is Wal-Mart Trade Over?

Published on Friday, 27 January 2012 04:18 Written by Christian Paolinetti

New York, January 27th (TradersHuddle.com) - Shares of Wal-Mart Stores, Inc. (NYSE:WMT) ended the trading session lower by $0.5 or -0.81% from its previous close. Wal-Mart's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Wal-Mart Stores, Inc. (NYSE:WMT) operates discount stores, supercenters, warehouse membership clubs, and neighborhood markets. The Company's stores sale products like general merchandise, apparel, electronics and groceries. Wal-Mart operates the warehouse membership stores under the Sam's Club name, where the company sell assorted merchandise including its private label products. Wal-Mart was founded by Sam Walton in 1945 and is based in Bentonville, Arkansas.

Wal-Mart's current stock range is defined by calculated support defined at $56.32 and by the resistance level at $62.00, which should be used by traders planning their trades.

Traders wanting to establish a position in Wal-Mart stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Wal-Mart shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: