Following our Dec. 31, 2011 report (WMT: $59.76 U.S.), Wal-Mart Stores Inc. had a sharp rise to $77.60 (A) for a 30-per-cent appreciation. Subsequently the stock pulled back to its long-term rising trend-line (solid line) and to its rising 40-week moving average (40wMA – B). Recent price action (C) suggests that the stock is ready to resume the long-term up-trend. Only a decline below about $70 would reverse the current long-term positive trend.
Point & Figure measurements provide targets of $79 and $89 (8-per-cent and 21-per-cent appreciation potentials from current levels). The large trading range (dashed lines) supports higher targets.
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.