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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: gonzongo who wrote (7124)	11/29/1997 11:17:00 AM
From: Robert Graham	Read Replies (3) \| Respond to of 12039

This stock by its price action has convinced me that it has been "wanting" to move higher and past 40, which I saw as a substantial point of resistance. I have seen this in the past on the charts, and on the tape. I see WMT is consolidating now right at its high. The speculators are active in this stock. When the stock looks like it will challenge its high, the speculators (likely the floor traders) bid it up to hit those stops that are likely sitting right above 40. There are probably other stops at 45. I have not followed WMT for a period of time now. The market has changed since then. We are moving into the Xmas season. If bad retail news comes out during this season, I think it will impact the retail industry. However, WMT is considered a leader in its industry. I think it may be the largest retailer out there in the world, and cetainly the largest in the United States. There has been on an agressive international expansion program this company is pursuing. So revenue is being quickly built with the expectation that earnings will follow. This is what I think drew speculator and even investor interest back into the stock. So if WMT can report better results (profits) than the rest for this Xmas season, then it may still perform. But I hesitate in trading a stock that is in a "soft" or down industry. A price above its resistance at 40 currently is not that far away. And you have the substantial short term influence of the locals behind the trader in this stock. IMO they do want to see this stock above 40. It will be interesting to see what happens when the market starts taking off. So without a close look at the current technicals of this stock, which I will do this weekend, I think as far as retail stocks go, WMT may be a good choice. I will definitely have to look into this for myself. Bob Graham

To: gonzongo who wrote (7124)	11/30/1997 12:38:00 PM
From: Robert Graham	Read Replies (2) \| Respond to of 12039

Ok. Now I have a question for all of you on this thread. What causes the price breaks that happend with a stock? You can see this best on intraday charts, even though it can leave its tracks on daily charts. This question is not as simple as it looks. I think the answer to questions like this one will help us understand what is operating behind the price action we see on the charts. If someone feels this is off-topic, please let me know. Bob Graham