Weekly candle closed as a bearish engulfing (engulfed 3 prior sessions – very strong statement), setting a short to mid-term top for WMT.
Above is my expectation for Monday/Tuesday PA into that white (c) or a tad higher. If this occurs, then it will likely trigger a short position, and an update will be provided.
PREVIOUS WRITE-UPS BELOW:
WMT is at an area of interest to accumulate/initiate puts or short via spot.
Ideally, PA should reach a tad higher, so layering in or nibbling at these levels is the prudent approach.
Stop at recent highs. $164.45.
If PA can get a clean rejection in that upper boundary of the area of interest, then our system will trigger a short position.
Weekly candle close is shaping up as a bearish engulfing, suggesting lower prices are in store for this instrument.
EW count is below.
Note the bearish divergences in the techs.
If one wanted to play puts for this initial ride down, then potentially 21 June with a strike of $130 could be of interest. Only utilize options if you know how to mange them, and as always, don’t risk more than 1% of your trading account on any position, and with options it is suggested to only risk 1/2%.