Wednesday, May 28, 2014

Wal-Mart Stock Dives on Panic Selling

From February 2014 to the end of May 2014, Wal-Mart (NYSE:WMT) was in a bullish bias. From the beginning of this month until now, the bias has become significantly bearish. This comes as a result of some panic selling, which has made the stock skydive.

Yes, the bears are pushing the price southwards and this may continue longer than is thought. The ADX period 14 has its line above the level 30, which shows a strong bias. The DM- is vividly above the DM+, which means the sellers have an upper hand. The MACD (default parameters) has both its histogram and signal lines below the zero line. This is a Bearish Confirmation Pattern, and therefore long trades are no longer sensible. Some biases are novel and some have been confirmed. This bias is relatively novel, and as well as confirmed.

It pays to trade only what you see, according to your trading methodology, and resist the feeling that you can predict tomorrow. This is a type of market in which the bear makes money – though a novice may only feel panicky. With the right guidance, you can learn the proper approach in this type of market. Some mentors out there can help. Truly, an instructor that could do everything to help you be a profitable trader is quite worth the effort.

This forecast is ended with the quote below:

“You have to accept that quality comes before quantity especially on the stock exchange – and many trades does not equal success.” – Dirk Stiller

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

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