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People of Wal-Mart: Still Spendin’

While the People of Wal-Mart website [1] is always an entertaining bookmark, the stock itself is no joke.  Sporting nearly a 20% return since its August low, this slow mover has outpaced the S&P’s return by about 2 1/2 times.

Checking out the recent price action, the stock is a bit range-bound, but a closer examination reveals an often misunderstood pattern: the cup & handle pattern [2].  The look of the pattern is easily identifiable to even novice chart readers, but they usually fail to take it in context.  Here, it’s right where it should be found – within an uptrend.

Here’s a closer look at the chart:

Why I Use TeleChart [3]

 

A confirmation of this pattern with an upside exit would put this one in the mid-60’s in short order, so it’s worth keeping on the radar even though it’s far from a momentum name. If anything, this is simply an example worth pointing out. The handle may need a bit more work and it needs to threaten the upper trend line to indicate a move is imminent, but it belongs on the radar no less.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast [4]

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