Two Setups For This Afternoon
Wal Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) has rallied intraday off
of a negative news report. The company issued its latest lackluster forecast for
December sales estimates, which might sound like another reason to sell the
stock, but in a case of “sell the rumor, buy the news” Wal Mart has
managed to consolidate in positive terrritory. The pullback from intraday highs
has taken the stock down between the 38% and 50% Fibonacci retracement levels.
At this time, based on the contrarian action of the stock off of “bad”
news we would continue to focus on potential setups from the long side.
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Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating) has established a
classic Slim Jim at lows formation, for which short entries below the
established range can be taken as the trend is resuming its downside momentum.
Alternatively, if an upside breakout of this consolidation pattern should
happen, this pattern can also be played for reversal opportunities, and entries
from the long side. An upside breakout of the current range would suggest that the selling pressure has played itself out, and the stock now has the
potential for a solid contratrend rally.
