The sad part here is that Target Corp. (NYSE: TGT) has performed even worse over the last 5 trading sessions. Compared to the 52-week lows, Target has held up significantly better. Costco Wholesale (NASDAQ: COST) is the stand-out stock with its shares almost flat over the last five days. As discussed below, Wal-Mart’s stock chart is in a precarious position.
The good news is that the shares have been trying to form a base here in the last three trading days and shares did close up 0.65% at $48.56 today. Before today, Wal-Mart had only risen once in the last seven trading sessions.
Goldman Sachs just kicked the stock off its prized Conviction Buy List . The company’s huge share buyback has failed to enthuse investors.
At $48.56, this stock is barely above the lows of the 52-week trading range of $46.25 to $63.85. This stock came within about 3.5% of new fresh 52-week lows as the low yesterday was $48.05 and the low on Monday was $48.22. Today’s lowest price was $48.10. But today also represented the highest close over the last three trading sessions. So technicians will be watching this one like a hawk. The chart acts like it is bottoming out. If it fails at all during the next two trading sessions then we will be of the opinion that Wal-Mart is going to challenge the charts for new 52-week lows.
Imagine at the peak of the recession after Wal-Mart won over more customers that its stock is within striking distance of 52-week lows. Some would call it irony, and some would call it deserved.
JON C. OGG
JUNE 17, 2009
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