Walmart showed up on a strength scan, and in the last couple of days there have been tests of $61 with some volume.  Looking at some charts:

Equivolume: WMT click for larger Equivolume chart

Support and Resistance: WMT click for larger Support and Resistance chart

The price action has come close to $61 a few times in the last handful of weeks.  Since the plunge in August, the buying pressure has been ramping up and has been approaching the all time high of $60.99.  If that level can be taken out and held for some time, it could be that the sellers at $61 have dried up on the discount retailer.

The average true range over 20 trading days, is almost $1.50.  This means even an average move against a long position entered at $61 would be in the $59.50 area.  If you keep 2:1 reward to risk, setting a stop at $59.50 would mean expectations for the price action to move up to $64.  It's tricky working with equities at their all time highs, so unless you eat risk for breakfast, this one may be better on the sidelines

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