Walmart Is Going To Be A Short: Great Level Revealed
Wal-Mart Stores, Inc. (NYSE:WMT) has just crossed the 52 week high level and made a new all time high. The current price is $77.91, +0.62 (0.80%). The level of $78.00-$79.00 represents a great shorting opportunity for many reasons, listed below.
1. Major trend line of resistance at $78.00-$79.00. Connect the high from 1999 to 2012. That trend line extends to a price of $78.00.
2. The stock is extremely extended on the daily, weekly and monthly charts.
3. February sales at Walmart were the worst in seven years according to an internal email.
4. Payroll tax hike will hit the Walmart consumer the most.
These are just the main reasons why the stock will pull back from the $78.00-79.00 range.