What Is Stock Tape Reading, and How Do Traders Use It?What Is Stock Tape Reading, and How Do Traders Use It?
Tape reading is a real-time market analysis method used to track buying and selling pressure. Unlike technical indicators, which rely on historical data, tape reading focuses on executed trades, order flow, and liquidity shifts. Traders use it to assess momentum, identify institutional activity, and refine trade timing. This article explores how tape reading works, its role in modern markets, and how traders apply it to short-term decision-making.
The Origins and Evolution of Tape Reading
Tape reading began in the late 19th century when stock prices were transmitted via ticker tape machines, printing a continuous stream of price updates on paper strips. Traders would gather around these machines, scanning for large trades and unusual activity to anticipate market moves. One of the earliest and most well-known tape readers, Jesse Livermore, built his fortune by studying these price changes and spotting institutional buying and selling patterns.
By the mid-20th century, as markets became faster and more complex, ticker tape machines were replaced by electronic order books. Instead of scanning printed numbers, traders began using Level 2 market data and time & sales windows to track order flow in real time. This transition allowed for more precise liquidity analysis, making it easier to see how large orders impacted price movement.
The rise of algorithmic and high-frequency trading (HFT) in the 2000s further changed the landscape. Today, market depth tools, order flow software, and footprint charts have replaced traditional tape reading, but the core principle remains the same: analysing how buyers and sellers interact in real time. While charts and indicators offer historical insight, tape reading provides a direct window into current market behaviour, giving traders an edge in fast-moving conditions.
How to Read the Tape
Nowadays, tape reading is all about real-time market data—watching when and how orders are placed and filled to gauge momentum and liquidity. Unlike technical indicators, reflecting past price action, tape reading focuses on what’s happening right now. Stock, forex, and commodity traders use it to assess buying and selling pressure, spot large orders, and understand market sentiment as it unfolds. Here is the key information provided by tape reading:
Time & Sales
The time & sales window (the tape) displays every completed trade. Each entry shows time, price, trade size, and whether it hit the bid or ask.
- Trades at the ask suggest aggressive buying, as buyers are willing to pay the market price.
- Trades at the bid indicate selling pressure, as sellers accept lower prices.
- Large block trades often signal institutional activity—tracking these can reveal where big players are positioning.
Bid-Ask Activity
Nowadays, an order book is a part of tape reading. The order book (Level 2 or DOM) shows the number of buy and sell orders at different price levels. While not all orders get filled, traders watch for:
- Stacked bids (a high concentration of buy orders) near a price level, which may indicate strong buying interest.
- Stacked offers (large sell orders) acting as resistance.
- Orders rapidly appearing or disappearing, suggesting hidden liquidity or fake orders meant to mislead traders.
Volume and Trade Size
Changes in trade size and volume help traders judge the conviction behind a move:
- Consistent large trades in one direction can suggest institutions accumulating or distributing a position.
- A surge in small trades may indicate retail participation rather than institutional moves.
- A sudden drop in trade activity after a sharp move may hint at exhaustion or a potential reversal.
Trade Speed
The pace of executions matters.
- Fast, continuous transactions suggest urgency—buyers or sellers are aggressively taking liquidity.
- A slowdown in transactions near a key level can indicate hesitation or a shift in sentiment.
Tape Reading vs Technical & Fundamental Analysis
Tape reading differs from technical and fundamental analysis in both approach and timeframe. While technical traders study historical price patterns and fundamental analysts focus on company performance and economic data, tape readers focus on real-time order flow to assess market direction as it develops.
Technical Analysis
Technical traders rely on chart patterns, moving averages, and oscillators to identify trends and potential turning points. These tools are built on past price data, meaning they lag behind actual market activity. For example, a trader using a moving average crossover strategy waits for confirmation before acting, whereas a tape reader sees momentum shifting as it happens by watching the flow of orders.
Fundamental Analysis
Fundamental analysis is longer-term, based on financial statements, earnings reports, and macroeconomic indicators. Investors using this approach focus on factors like revenue growth, interest rates, and industry trends to decide whether a stock is undervalued or overvalued. Tape reading, by contrast, ignores these metrics entirely—it’s used by short-term traders reacting to immediate buying and selling pressure.
Where Tape Reading Fits In
Many traders combine approaches. A day trader might use technical analysis to find key price levels and then apply tape reading to fine-tune entries and exits. Similarly, a swing trader tracking earnings reports may use tape reading to see how large players are reacting. Each method provides different insights, but tape reading offers a unique advantage: it reveals market sentiment in real time, helping traders assess momentum before price movements become obvious.
Advantages and Disadvantages of Tape Reading
Tape reading gives traders an inside look at real-time market activity, but it also comes with challenges, especially in modern electronic markets.
Advantages
- Immediate Market Insight: Unlike lagging indicators, tape reading reflects live buying and selling pressure, helping traders react before price changes become obvious.
- Identifying Large Buyers & Sellers: Institutions often execute orders in patterns, leaving clues in the stock market tape. Recognising these can help traders gauge potential price direction.
- Fine-Tuning Entries & Exits: By tracking order flow near key price levels, traders can time their trades more precisely rather than relying on static chart signals.
- Useful in Fast-Moving Markets: Tape reading can be particularly valuable in scalping and day trading, where short-term momentum plays a key role.
Disadvantages
- Algorithmic Trading Distortion: High-frequency trading firms place and cancel orders rapidly, making it harder to interpret true supply and demand.
- Steep Learning Curve: Unlike technical analysis, which provides visual patterns, tape reading requires experience in spotting meaningful order flow changes.
- Mentally Demanding: Constantly watching the tape can be exhausting, requiring a high level of focus and quick decision-making.
- Less Effective in Low-Volume Markets: When liquidity is thin, tape reading becomes unreliable, as fewer trades mean less actionable data.
Modern Footprint Charts and Order Flow Software
While some stock tape readers rely on raw order flow data, many use footprint charts and order flow software to visualise buying and selling pressure more effectively.
Footprint charts display executed trades within each price bar, showing volume distribution, bid-ask imbalances, and point of control (POC)—the price level with the highest traded volume. This helps traders see where liquidity is concentrated and whether buyers or sellers are in control.
Order flow software offers heatmaps, cumulative delta, and volume profile tools. Heatmaps highlight resting liquidity in the order book, revealing where large players may be positioned. Cumulative delta tracks the difference between market buys and sells, helping traders assess momentum shifts.
These tools provide a more structured approach to tape reading, filtering out noise and making it easier to spot large orders, absorption, and potential reversals. While experience is still essential, modern software gives traders a clearer view of market behaviour beyond just raw time & sales data.
The Bottom Line
Reading the tape remains a valuable tool for traders looking to analyse real-time order flow and market liquidity. While there are numerous algorithms that place trades, understanding executed trades and bid-ask dynamics can provide an edge in fast-moving conditions.
FAQ
Is Tape Reading Still Useful in Trading?
Yes, but the application of tape reading in trading has changed. While traditional tape reading focuses on printed ticker tape, modern traders use time & sales data, Level 2 order books, and footprint charts to analyse order flow. High-frequency trading and algorithmic activity have made tape reading more complex, but it remains valuable for scalpers, day traders, and those tracking institutional activity.
What Are the Principles of Tape Reading?
Tape trading is based on real-time order flow analysis. Traders focus on executed trades (time & sales), bid-ask activity (order book), volume shifts, and trade speed to gauge buying and selling pressure. The goal is to understand how liquidity moves in the market and spot signs of institutional accumulation or distribution.
What Is the Difference Between Order Book and Tape?
The order book (Level 2 or DOM) shows pending orders at different price levels, representing liquidity that may or may not get filled. The tape (time & sales) displays completed transactions, showing actual buying and selling activity in real time.
What Is the Difference Between Technical Analysis and Tape Reading?
Technical analysis relies on historical price patterns and indicators, while tape reading focuses on real-time executed trades and market depth. Technical traders look at charts, whereas tape readers analyse live order flow to assess momentum and liquidity shifts.
How to Read Ticker Tape?
Modern ticker tape is displayed in time & sales windows on trading platforms. Traders monitor price, trade size, and whether transactions occur at the bid or ask. Rapid buying at the ask suggests demand, while consistent selling at the bid indicates selling pressure.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stocktrading
Apple: Wave [2] Correction We now consider the dark green wave to be complete and thus place AAPL in the intermediate corrective movement of wave , which can be further subdivided into waves (A), (B), and (C) in magenta. Currently, only the last part of this (C) wave should be missing before the next impulsive uptrend unfolds towards the previous all-time high. We must still weigh our alternative scenario with a 34% probability: If the price falls below support at $168, this scenario with a new low for the blue wave alt.(IV) would be confirmed, although in this case, the price should not fall significantly below our previous Target Zone.
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NEM SHORT IDEANEM Insurance stock is ready to have a drop. There's a bearish divergence signal from the awesome oscillator showing that there's a high tendency for the price of the stock to drop as much as to 11.65 and below that value. Any value below 11.50 is the discount level where there can be a potential for the next long opportunity.
Looking at the past data, some patterns were revealed. In September 2016, there was a bearish divergence signal and the price dropped from around 3.71 to around around 1.51. Likewise, in September 2022, there was a bearish divergence and the price dropped from around 5.65 to around 3.71. Similar pattern is what is repeating itself showing that there's a higher probability that the price dropped into the discount level. For an investor holding this stock, this maybe a signal to sell and wait for another long opportunity. For a trader, it's an opportunity to short the stock, targeting the discount price around 11.65.
Confluences for the short signal:
1. Price is showing higher high while awesome oscillator is showing lower high indicating bearish divergence.
2. When similar patterns occured in the past, price dropped into the discount level.
3. A bearish engulfing candlestick had been formed showing that price is likely going to drop further.
Disclaimer: This is not a financial advice. The outcome maybe different from the projection. If you can't accept the risk, don't take the signal.
NASCON LONG IDEA CONTINUATIONNASCON stock reached its all time high value of around 77 in January 2024. This happened after a bearish divergence signal from the awesome oscillator. Then, it dropped into the discount level. After which a bullish divergence signal was given, followed by a breakout. Since that breakout, price has been going up and rally for the all-time-high value. The first long opportunity could have been in November 2024 when the price was around 30. The next opportunity was when the price was around 44. Then the next opportunity was when price was around 54. Joining the rally now is not too late since the stock has a potential to hit 77.
Confluences for the long idea
1. Price was coming from the discount level.
2. Price broke out of a down trend line.
3. Price has been rally after a bullish divergence signal given by the awesome oscillator.
4. Bullish engulfing candlestick was formed recently after breaking a key level.
Disclaimer: this is not a financial advice. The outcome maybe different from the projection. If you can't accept the risk, don't take the signal.
Berger Paints PLC Berger Paints PLC stock is showing a bullish signal for appreciating in value. The price dropped into a discount level and broke a down trend line with a strong bullish candle, closing above the trendline. This happened when the price was also in an oversold region as indicated by Awesome Oscillator.
Currently, there has been a pull back with a rejection, showing more confidence in the bullish move. The stock can be bought at the current price while targeting 24, 26.60 and 30.80 as the final target based on the Fibonacci level.
Confluences for the long signal:
1. Price is coming from a discount level
2. Price was in oversold level before and it is showing more bullish signal
3. Price had broken out of a down trend line with a strong bullish candle
4. There was a strong rejection from last week candle.
Disclaimer: this is not a financial advice. The outcome maybe different from the projection. Don't take the signal if you don't accept the risk.
Intel Breakdown Alert! Bearish Setup with High R:R Opportunity !📉 Intel Corporation (INTC) – Bearish Setup Analysis
Timeframe: 4H | Ticker: NASDAQ:INTC | Exchange: NASDAQ
🔍 Technical Breakdown
We are currently observing a potential bearish reversal on Intel Corp. following a clear breakdown from a rising parallel channel on the 4H chart.
🟦 Pattern Observed
Price was previously moving within a rising channel, forming higher highs and higher lows – a typical short-term bullish structure.
Recently, price broke down below the lower boundary of this channel, signaling a potential shift in momentum from bullish to bearish.
📌 Trade Setup
Entry Zone: Between $20.22 – $20.06
Price is currently trading in this zone, presenting a potential short entry opportunity following the channel breakdown.
Stop Loss: $21.77
Placed above the previous resistance zone and the broken channel. If the price reclaims this level, the bearish thesis is invalidated.
Final Target: $17.70
This level represents a key support zone from previous price action and aligns with potential measured move from the channel breakdown.
✅ Why This Setup?
Channel Breakdown
A break below a well-defined channel often marks a change in trend. This gives a high-probability setup for trend reversal traders.
Bearish Momentum Confirmation
After the breakdown, price failed to reclaim the channel, and is now trading below the prior support, flipping it into resistance.
Risk/Reward Ratio
This setup offers an excellent R:R ratio, with downside potential toward $17.70 and a relatively tight stop just above the failed structure.
Market Structure Alignment
Lower highs and lower lows now appear to be forming post-breakdown, further confirming a potential bearish move ahead.
📉 Bias: Short
📈 Invalidation: Break and close above $21.77
🎯 Target: $17.70
🧠 Disclaimer: This is not financial advice. Always do your own research and manage your risk accordingly. Trade safe!
COINBASE: 3rd Bollinger Squeeze is a pullback buy signalCoinbase is bullish on its 1D technical outlook (RSI = 65.834, MACD = 21.140, ADX = 19.909) as it is extending the bullish wave following the S1 rebound. The Bollindger Bands are now expriencing a squeeze, which is the 3rd since the bottom. The 2024 bullish wave also had three Bollinger Squeezes with the 3rd being the last that made the 349.50 High but not before a pullback to the Bollinger bottom. If that takes place, it will be a signal to go even stronger on the bullish side and target the R1 level (TP = 348.50).
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Electronic Arts: Heading LowerElectronic Arts has dropped roughly 13% since our last update, continuing the expected decline within ongoing wave (3). This move is likely to break below support at $114.60 and gradually push the stock downward to the anticipated low. Our alternative scenario suggests the correction may already be done, but that path hinges on a convincing move above $169.82 — a threshold we’re not close to yet. For now, the downtrend remains in control.
📈 Over 190 precise analyses, clear entry points, and defined Target Zones - that's what we do.
Palantir Technologies (PLTR) Shares Pull Back from Another HighPalantir Technologies (PLTR) Shares Pull Back from Another High
Shares in Palantir Technologies (PLTR), a company specialising in big data analytics software, have seen phenomenal growth in 2024, surging by approximately 340%, making it the top performer in the S&P 500 (US SPX 500 mini on FXOpen). This exceptional performance was driven by booming demand for artificial intelligence (AI) and machine learning technologies, which underpin Palantir’s products. The company has demonstrated steady growth in revenue and profitability, attracting major new clients across both the commercial and government sectors.
In 2025, PLTR remains among the market leaders, with its share price up roughly 60% year-to-date. In mid-May, it hit a fresh record high on the back of a strong fundamental backdrop. That backdrop was bolstered yesterday by news that the Pentagon had increased funding for its Maven Smart System programme — which involves deploying AI on the battlefield — to $1.3 billion through to 2029.
However, this news did not result in a new high. In fact, this week, PLTR stock have underperformed the broader stock market — and this may be explained by technical analysis.
Technical Analysis of the PLTR Chart
The interplay of supply and demand in 2025 has formed a broad ascending channel, characterised by:
→ The price breaking above the upper boundary in February following a strong earnings report, and dipping below the lower boundary in response to Donald Trump’s announcement of new international trade tariffs.
→ In mid-May (as shown by the arrow), the median line acted as support. However, after reaching the upper boundary, bullish momentum faded. As a result, the PLTR price has failed to hold recent highs and has fallen back below $130 — with market participants seemingly viewing the stock as overvalued, evidenced by false breakouts above previous peaks.
Given the above, it is reasonable to assume that PLTR may undergo a deeper pullback — potentially towards the median of the channel or even its lower boundary.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Core Scientific (CORZ) – Mining Bitcoin to Powering AICompany Snapshot:
Core Scientific NASDAQ:CORZ is evolving from a crypto miner into a high-density colocation provider, strategically pivoting into the explosive AI infrastructure space.
Key Catalysts:
Strategic Shift to AI Infrastructure 🧠📡
$1.2B agreement with CoreWeave expands AI compute colocation footprint
Signals institutional validation of CORZ’s infrastructure capabilities
Massive Power Footprint ⚡
1,300 MW capacity across North America
Ideal for power-hungry AI training and inference workloads
AI & HPC Market Tailwinds 🚀
AI infrastructure demand is surging; CORZ is positioned as a first-mover
Colocation demand outpacing supply = pricing power & revenue upside
Transformation Narrative 📈
Transitioning from volatile crypto dependence to stable, high-margin AI hosting
Increased diversification and enterprise appeal
Investment Outlook:
✅ Bullish Above: $8.75–$9.00
🚀 Upside Target: $15.00–$16.00
📈 Growth Drivers: Strategic AI pivot, large-scale power assets, and long-term demand for compute
💡 Core Scientific – No longer just mining blocks, now powering breakthroughs. #CORZ #AIInfrastructure #DigitalTransformation
Apple (AAPL) share price slips towards psychological $200 levelApple (AAPL) share price slips towards psychological $200 level
Yesterday, Apple shares (AAPL) fell by 2.5%, edging closer to the key psychological threshold of $200. Moreover, the stock is underperforming the broader market, which reached new highs earlier this week — a move AAPL has yet to replicate.
Why is AAPL’s stock price declining?
According to media reports, investors may have grown concerned after OpenAI acquired a startup founded by Jony Ive, Apple’s former chief designer, for $6.5 billion.
The move is being interpreted as OpenAI’s first step toward launching a physical AI-powered device — one that could, eventually, pose a challenge to Apple’s hardware, even if not in the near term.
Technical analysis of the AAPL chart
Bulls may be hoping the AAPL price finds support at the confluence of two key levels:
→ the psychological $200 mark;
→ support from the second half of May (the lower blue trendline).
However, the broader technical context raises some bearish concerns:
→ the $215–222 zone, which previously acted as support, is now capping price advances (as highlighted by the arrows);
→ the red descending channel appears to define the current trend trajectory — and its relevance may be reinforced if the price drops and consolidates near its median line, signalling a balance between buying and selling pressure.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
TESLA: Can it worth $4,000 a share buy end of 2026?Tesla is bullish on its 1D technical outlook (RSI = 65.527, MACD = 22.160, ADX = 43.922, being on a bullish wave to recover the ATH. Since the 2019 low the prevailing long term pattern is a Channel Up and the recent Feb-March correction resembles COVID's in March 2020. If that's the case then the stock is on a powerful long term bullish wave that can reach the 4.5 Fibonacci extension before the 5.0 time Fib. This implies that TSLA price per share can be $4,000 by the end of 2026. Do you think that's realistic?
See how our prior idea has worked out:
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Nasdaq’s Next Move Revealed This Week – Don’t Miss the Breakout Following a strong surge at the start of the trading week, the Nasdaq reached a new high since March 26th. At this juncture, I anticipate a potential pullback before any sustained upward movement. My analysis suggests monitoring for a retracement to the New Week Opening Gap (NWOG), where price action will likely provide critical insights. I see two probable scenarios:
1. A move to the NWOG, followed by a strong bounce, potentially targeting a new all-time high, as some market commentators have suggested.
2. A weak reaction at the NWOG, leading to a breakdown below this level, with 16,000 as the next key support target.
This week's price action will be pivotal in determining the Nasdaq's near-term direction. I recommend close observation of these levels and disciplined risk management when positioning for either outcome.
UnitedHealth (UNH) Share Price ReboundsUnitedHealth (UNH) Share Price Rebounds
A month ago, in our analysis of the UNH chart, we:
→ highlighted that UnitedHealth shares had lost nearly 23% in value;
→ drew a descending channel and suggested that bearish pressure could continue, threatening the support level around $450, which had held since early 2022.
Since then, UNH’s stock price decisively broke below that level (as marked by the arrow), falling to around $250 — its lowest point since spring 2020 — before staging a sharp rebound. This steep price movement was driven by a series of fundamental developments, including:
→ the resignation of the CEO and news of a Department of Justice investigation into potential Medicare fraud;
→ UnitedHealth withdrawing its earnings guidance for the coming year;
→ political debates over the Medicaid programme as part of the 2025 budget negotiations;
→ President Trump’s directive to cut prescription drug prices.
Recent news that the new CEO and several top executives have bought tens of millions of dollars’ worth of UNH shares appears to have renewed investor confidence — the share price rose above the $300 mark yesterday.
Technical Analysis of UNH Share Chart
These latest developments justify an update to the descending channel configuration. Of particular note is the gradual decline with limited volatility — a sign that the price is moving along the channel's median line (highlighted on the chart).
In this setup:
→ the bounce from the $250 level points to the lower boundary of the channel;
→ traders may consider a scenario where the current recovery pushes UnitedHealth stock towards the median, after which supply pressure may return and offset the recent dominance of demand.
It’s also possible that the key psychological level of $300 could now act as support.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
4H FVG level is indicating a strong bullish sentiment.Market Analysis – Gold (XAU/USD)
Gold is currently trading within a bullish Fair Value Gap (FVG) on the 4-hour timeframe, accompanied by notable volume activity. Just below this zone lies a weekly FVG, and multiple other FVG and Breaker Block (BPR) formations have emerged in the same region. The price action around the 4H FVG level is indicating a strong bullish sentiment.
However, on the 1-hour chart, the market has recently formed a bearish FVG in the 3214–3220 range. If the price breaks above this level with strength, the bullish momentum could potentially drive the market toward the following upside targets: 3233, 3240, 3250, and 3260.
Let’s monitor closely and remember: Do Your Own Research (DYOR).
$LMT began scaling the world’s most expensive weapons programLockheed Martin began scaling the world’s most expensive weapons program back in 2013. A nice match with Palantir? Isn't it? ;)
Since 2013, NYSE:LMT has been on a long-term upward trajectory - marked by consistent higher lows and major consolidation zones.
But here’s what most people don’t ask:
Why 2013? Why then?
The Real Catalyst: F-35 Lightning II
That single event? It triggered:
→ Full-rate production across the U.S. and allied nations
→ Huge visibility into long-term defense revenues
→ Global adoption (UK, Israel, Japan, Australia…)
Look closely at the chart and you’ll see:
→ Key support zones (red lines) from $430–$450
→ Massive consolidation in 2017–2020 and again 2022–2024
→ A textbook bullish structure on the weekly time frame
Price is sitting at ~$469. If this support holds… we may be at the start of the next leg up.
This wasn’t just a product launch. It was a multi-decade defense bet. And it paid off.
Post-2011 U.S. defense budgets started climbing again.
And where did that money go?
→ Aerospace
→ Missile defense
→ Cybersecurity
All categories where Lockheed Martin dominates.
Major wins that anchored the trend
From 2013 to today:
→ Multi-billion dollar Pentagon F-35 contracts (Lot 6 to Lot 17 — $18B in 2023 alone)
→ International THAAD defense system deals
→ Long range hypersonic weapon delivery
→ Space wins via NASA’s Artemis program
Each of these was a fundamental “trust” signal to the market.
Analysing the Spike in Volatility on the Walmart (WMT) ChartAnalysing the Spike in Volatility on the Walmart (WMT) Share Price Chart
On Thursday, the US retail giant reported its quarterly results — which turned out to be broadly better than expected. While total revenue was roughly in line with analysts’ forecasts, earnings per share came in higher at $0.61 versus the expected $0.57.
At the same time, Walmart CEO Doug McMillon stated on Thursday:
"We will do everything we can to keep our prices as low as possible. But given the scale of the tariffs, even at reduced levels, we won't be able to absorb all the pressure, considering the reality of tight retail margins."
This statement may have raised concerns among market participants about the company’s future earnings, contributing to Friday’s drop in the share price to $92.
It also drew the attention of the US President. On Saturday, Donald Trump said that Walmart (WMT) should “swallow the tariffs” instead of blaming them and raising prices.
In response, Walmart reiterated that it will keep prices as low as possible for as long as it can — which has always been the company’s approach.
Technical Analysis of the WMT Stock Price Chart
Looking at the broader market context, we can see that price fluctuations formed a narrowing triangle in late April — a sign that buyers and sellers had reached some agreement around a fair value of approximately $95.50.
In early May, sentiment shifted in favour of the bulls, with this level acting as support (marked by an arrow).
The earnings release triggered a spike in volatility — the ATR indicator is now at a one-month high. The Walmart stock price extremes seen at the end of last week suggest two key levels, roughly equidistant from the $95.50 axis:
→ resistance around $99 (reinforced by the psychological level of $100);
→ support around $92.
Given the above, it is reasonable to suggest that once the market has digested the news, price movements may calm down again. In that case, we may well see another narrowing triangle form on the WMT chart — slightly above the previous one.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.