Following our previous report (March 20, 2010 – $55.34 U.S.) Wal-Mart Stores Inc. completed the second part of a bullish technical base known as a Duplex Horizontal. This base was made up of two trading ranges, where the first was between $47 and $53 and the second between $48 and $56 (dashed lines). The recent rise to $60 (A) signalled the breakout and the start of a new major up-leg. Only a decline below the 40-week moving average (currently at about $55) would be negative.
Point & Figure measurements provide targets of $67 and $79. The large base 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. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com