Bentonville, Ark., Population: 19,736

October 25, 2002
Derrick Hobbs

Wal-Mart is in the
process of completing a Bearish Gartley pattern into a large Fibonacci price
resistance zone on the WEEKLY chart. The pattern officially completes at 59.61,
which is the .786 retracement of the March 23 week-ending high and the July 27
week-ending low. I also have a couple of time cycles that are kicking in for
the end of next week. What does this mean?

Short Term:

I would anticipate this
Pattern and Fibonacci price resistance zone will act as a magnet on price and
pull it up a couple of points. So, if I’m short-term trading I would focus on
long setups and triggers until we actually bump into this resistance zone.

Longer Term:

Wait for this Bearish Gartley
pattern to complete and for
(
WMT |
Quote |
Chart |
News |
PowerRating) to hit our Fibonnacci resistance zone.
When that occurs, look for opportunities to short WMT. Personally, if I get a
trigger to short within this zone I will place an initial stop loss just above
62.50. If I don’t get a trigger and WMT clears our resistance zone, then this
stock is poised to clear the March 2002 highs and I’ll have to shift gears.