Equity Clock

Stock Prices Rolled Back, Time for Discount Shopping? – Technical Analysis

Highlighting: Wal-Mart Stores, Inc. (NYSE:WMT)

Stock prices were discounted across the board today, yet this stock had the strength to overcome and post a gain on the session.   The stock is producing the technical signals consistent with an entry point and the seasonality is positive as well.   Will this stock leave you with a smiley face?

Stocks were absolutely battered today with very few safe from the selloff.   Of the 1661 stocks analyzed, only 82 advanced, leaving the remaining 1579 declining or neutral on the day.   Losses across the stocks averaged 2.76% on volumes over 38% greater than the day previous.   Oversold levels according to stochastics has skyrocketed to 41% of equities.   Small-Caps came out the victor as having the greatest average loss at 3.04%.   Mid-Caps and Large-Caps weren’t far off, taking hits of 2.90% and 2.68%, respectively.   Looking to the optimistic side of things, two stocks did make gains greater than 10% on the day: Cabela’s Incorporated (NYSE:CAB) and NutriSystem Inc. (NASDAQ:NTRI).   Both companies reported earnings that beat expectations, sending the prices upward to float the stock  above the losses.

Chart courtesy of StockCharts.com
WAL MART STORES (WMT)
	54.02	+ 0.28 (0.52%)
Support 2	Support 1	Pivot Point	Resistance 1	Resistance 2
53.03	53.52	54.05	54.54	55.07
Expected Short-Term Trading Range: 53.9 – 55.72
Support & Resistance Analysis		Broke Lwr Resistance (1)
MACD Analysis		Negative/Increasing		MACD
MACD vs. Signal		Below/Thinning		-0.290
RSI Analysis		Below 50		RSI
Stochastic (Fast) Analysis		Bullish Crossover		42.769
50-Day MA Analysis		Below 50-Day MA		%K (fast)
200-Day MA Analysis		Above 200-Day MA		40.741
Critical Level Analysis
WAL MART STORES (WMT) Seasonality
Analysis has revealed that with a buy date of September 1 and a sell date of April 5, investors have benefited from a total return of 110.52% over the last 10 years.   This scenario has shown positive results in 7 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of October 10 and a sell date of April 5, producing a total return over the same 10-year range of 76.97% with positive results in 9 of those periods.
The buy and hold return for the past 10 years was -13.11%.
Comments:
Walmart has a very favorable "buy" rating that 21 out of 29 analysts covering the stock believe in.   Fundamentals are undoubtedly strong and indicate a target of $59.   The stock is rebounding from a short-term downtrend that appears to have been halted by a support level at $53.50   Walmart customarily shows seasonal gains between now and mid-July for returns reaching 7% over the period.
News Headlines for WAL MART STORES (WMT)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=WMT[/feedsnap]
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Disclosure: Mr. Vialoux does not own securities mentioned in this report.
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Data offered in this report is believed to be accurate, but is not guaranteed.

Stocks mentioned in this post: WMT