Even though Wal-Mart's (WMT - Get Report) price action has been somewhat less impressive this year (the retail behemoth is trailing the S&P 500 by around 7% in 2011), the technicals point to a potentially good buying opportunity in shares. That's thanks to the base the stock built at its previous pivot level of $51. Now, with shares bouncing out of their consolidation channel, Wal-Mart is giving short-term traders reason to buy.
That's because with resistance at the 200-day moving average out of the way, this stock has little in the way of upside resistance until the 50-day moving average, currently at $54 and change. Yesterday's white bar was the initial bullish move -- wait for a second consecutive open above the 200-day before becoming a buyer. If you decide to go long Wal-Mart, consider a protective stop just below the lower blue support line at $51.
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