RON MEISELS AND MONICA RIZK
From Saturday's Globe and Mail Published on Saturday, Mar. 20, 2010 12:00AM EDT Last updated on Saturday, Mar. 20, 2010 2:32AM EDT
Bullish on Wal-Mart
Wal-Mart Stores Inc. (yesterday's closing price $55.34 U.S.) had a sharp decline from the high of $63.85 in September, 2008, to about $47 in October of the same year (A-B) and stayed below a descending trendline for almost one year (see dotted line). Wal-Mart remained within a horizontal area of accumulation for most of 2009, mostly between $47 and $53 (see dashed lines), but recently it rallied to $55.09 to signal a breakout from the trading range and the start of a new up-leg (C). Only a decline below the 40-week moving average (currently at about $51.50) would reverse the current up-side potential.
Point & Figure measurements provide targets of $69 and $74. The large area of accumulation (see dashed lines) supports higher targets. Use all opportunities to acquire a full position.
Ron Meisels is a contributor to the http://www.NA-marketletter.com website. Monica Rizk is the senior technical analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary. Chart source: http://www.decisionplus.com.
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