Wal-Mart’s New Big Problem: A Broken Stock Chart (WMT)
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…
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
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
