Hey Shoppers,

I am seeing a change in trend in Walmart (Ticker: WMT).

After having a really nice run to the upside from $145 to $158 in twelve trading days, Friday’s candle could be signaling a pullback.

It is called a bearish engulfing candle and it is found at the top of an uptrend, takes out the previous day’s high and closes near the low of the session.

It all completely engulfs the previous day’s candle:

I think WMT can trade back down to my old resistance/new support level at $153.85.

Beyond there is the 50 day moving average coming in at $150.80.

The implied volatility of this weeks at the money puts looks pretty inexpensive:

Trade Review

I called for the Russell 2000 to trade higher using Direxion Small Cap Bull 3x (Ticker: TNA).

Although it traded lower on Friday, the bull flag is still in tact:

And it is still honoring the support of the 200 day moving average (turquoise line).

As long as it doesn’t close below there, this is still a good play.

Thanks for Reading … See You Next Tuesday,

Licia Leslie