Buying Wal-Mart stock during Pullback
Wal-Mart stock is in the news today due to the Q3 earnings report. The reason I am writing about WMT stock though is to remind you the words I had written about this stock during the previous earnings report 3 months ago when WMT stock was trading at $75: I’m buying Wal-Mart stock on retracement to $60-65, and today that retracement has breached the support level at $71 with a gap down!
I’m no expert when it comes to stock trading. I am still studying the markets, reading books and improving my trading skills, while I am discussing about finance in this blog. That why I was quite surprised to receive 4 responses in StockTwits when I had posted about my prediction regarding the WMT stock in August.
Despite the 9% increase of 3Q net income that Wal-Mart is reporting today, the stock is down 4.5% during the first hour of NYSE trading. If you read that old post of mine, I was mentioning the support level between $60-65 that is found in the WMT monthly stock chart. If I was going to invest in Wal-Mart stores, that is the price I would be looking for once again. Finally, although I talked about trading long when a retracement takes place, short-selling WMT stock was not in my plans. Trading against the trend isn’t my trading style and I would very much like to take advantage of an established trend, when stock price retraces. And it seems the WMT stock pullback will offer plenty of opportunities to buy WMT shares.