Wal-Mart’s (NYSE:WMT) Looking Promising
Source: http://feedproxy.google.com/~r/ContrarianProfits/~3/pHJ4N3h0FJk/15997Posted on Tuesday, April 28th, 2009 | In Market Commentary
When people are losing their jobs and pitching tents because they lost their home, they aren’t going to go to Macy’s to buy a new pair of $100. With whatever cash they have (or panhandle) they’re going to go to Wal-Mart (NYSE:WMT) instead.
Admittedly, this isn’t exactly shocking stuff. Wal-Mart has been praised for being one of the only retailers to continue posting earnings that surpass estimates. But praise hasn’t given them higher share prices since the crash in October.
As you can see, Wal-Mart’s been dropping since last October. But interestingly enough, WMT has managed to hold above its October lows.
This combined with the fact that both the RSI and Slow Stochastic are showing WMT as oversold means that buyers should rush in and push WMT share prices higher.
For the traders out there – go long and place a stop @ $47 per share. If all goes as planned, WMT should rise over 10% in the next 30 days.
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