We reported a breakout and higher targets for Wal-Mart Stores Inc. on Dec. 31, 2011 (US$59.76) then confirmed higher targets on April 6, 2013 ($76.39). Wal-Mart rallied to $79.96 in May, 2013 (A) and then settled in a wide horizontal trading range mostly between $72.50 and $80 (dotted lines). The recent rise to $88.09 signalled renewed investor interest and the resumption of the long-term up-trend (B).
Wal-Mart is in the midst of a pullback toward $81 to provide a better entry level. Only a sustained decline below $77-$78 would be negative. Point & Figure measurements provide targets of $94, $99 and $109. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
