During Friday's Mad Money program Jim Cramer told viewers his game plan for this week.
On Tuesday, retail earnings start in earnest with Walmart (WMT) , Home Depot (HD) and Macy's (M) , as well as game maker Take-Two Interactive (TTWO) . Cramer was bullish on Walmart and Home Depot but felt it was still early for Macy's. He said Take-Two isn't going away anytime soon.
Let's check out the charts of WMT.
In this daily bar chart of WMT, below, we can see that prices topped out in November and corrected into early March. WMT has rebounded since early March and is now trading above the rising 50-day moving average line and around the 200-day moving average.
The On-Balance-Volume (OBV) line has improved from the middle of March telling us that some buyers of WMT are being more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is still above the zero line and could soon cross to a fresh buy signal if prices continue to rise.
In the weekly Japanese candlestick chart of WMT, below, we see an improved picture. Prices are in a longer-term uptrend and trading just below the rising 40-week moving average line. There are some recent lower shadows telling us that traders are rejecting the lows.
The weekly OBV line shows some improvement from late February and the MACD oscillator is crossing to the upside to give us a cover shorts buy signal and an outright buy signal at the same time.
In this daily Point and Figure chart of WMT, below, we can see that prices have reached their downside price target of $131. A trade at $144 is likely to turn this chart more positive.
In this second Point and Figure chart of WMT, below, we used weekly close-only price data with an even-dollar scaling and a five-box reversal filter. More price history is shown along with a potential $260 price target.
Bottom-line strategy: Traders could go long WMT at current levels risking to $134. Longs can be added above $144. Our price targets are $153, the round number of $200 and then $260.
(Walmart and Take-Two are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)
