Investing
Wal-Mart's New Big Problem: A Broken Stock Chart (WMT)
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Wal-Mart Stores, Inc. (NYSE: WMT) has a new problem other than a disappointing earnings report. Unless the world’s largest retailer sees an immediate stock price recovery, this one now has a broken chart. For years there has been a rule of thumb that investors should buy the stock down in the low $50’s and sell the stock in the high $50’s… We have discussed this breakout chart pattern for a few weeks and we even named Wal-Mart to the 2012 Model Dividend Portfolio due to its leadership of dividend yields in retail. Today’s drop of 3.9% down to $60.03 is currently a 50-day moving average violation under the $60.22 level. Things were looking so good here just on Friday. Some analysts were even raising price targets in recent weeks. Now it has some serious chart damage.
Shares closed at $62.48 and Friday and the stock recently put in a new 52-week high. With a 52-week range of $48.31 to $62.63, the next few trading days should represent a critical juncture for Wal-Mart’s share price.
JON C. OGG
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