Not all blue chip names look quite as bullish right now -- take Wal-Mart ( WMT). The retail behemoth looks downright "toppy" thanks to a long-term bearish setup that's been playing out in shares. Now, this stock is very close to triggering a sell (or short) signal for traders.
Wal-Mart is currently forming a double top, a price setup that's formed by two swing highs at the same level. A move through $72.50 support signals that the last contingent of buyers have gotten swatted out of this stock, and it's time to be a seller. This morning, WMT is perilously close to that $72.50 breakdown level. That said, don't consider this pattern triggered until WMT moves materially though it.Support at $66 looks like a reasonable downside target for this stock. Investors looking for a bargain-priced entry in WMT should hold out for shares to hit $66 before trying to go long. For the time being, bears are stacked in this stock.
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