Published March 29, 2017
6:24 PM

On March 29, 2017 Wal-Mart (WMT) crossed above its 200 day moving average (MA). Historically this has occurred 192 times. When this happens, the stock does not always continue to rise. It has a median gain of 3.407% and maximum gain of 36.667% over the next 15 trading days.


When we take a look at other technical indicators, the relative strength index (RSI) is at 58.1906. RSI tends to determine overbought and oversold levels. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading declares the stock is neutral and looking for direction but slightly moving up at the moment.

The true strength index (TSI) is currently 7.9533. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock is up. Even though it is still a positive number, it is trending downward.

The positive vortex indicator (VI) is currently 1.000 and just crossed over the negative indicator. The VI determines current trend and direction. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The current reading declares the stock is trending upward.

Considering the moving average crossover, RSI, TSI, and VI levels, the overall near-term stock direction appears to be slightly trending upward. Based on historical movement compared to current levels and the current position in a downward trend channel, the stock could gain 0.71% over the next three weeks. The stock recently broke out of its most recent downward micro trend channel and appears to be using the old resistance as the new support which is common. Over the next few months the stock will approach the bottom of its major support channel that is pointing upward. For this reason, I do not expect much upward movement over the next three weeks.

DISCLOSURE: I currently do not have positions in the stock mentioned above. I most likely will not enter a position within the next 72 hours. Historical movements and technical indicators should never be the sole basis for entering positions involving risk. Make sure appropriate research is conducted prior to taking any risk in a marketplace.

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