As the housing market and remodeling businesses gain strength, Jim Cramer continues to recommend names like Walmart (WMT) , he said on Monday night's "Mad Money" program.
We last looked at WMT back on Aug. 27 when we wrote that, "Go long WMT or add to longs. Risk a close below $126 while looking for gains to $155 and then $173."
Prices got close to our $155 target in early September before retreating. Another up leg seems to be under way, so let's check out the charts again.
In this updated daily bar chart of WMT, below, we can see that WMT found support around $135, which is well above our $126 stop recommendation. Prices are above the rising 50-day moving average line and above the rising 200-day moving average line. The On-Balance-Volume (OBV) line broke its downtrend and turned higher in late August. A rising OBV line tells us that buyers of WMT are more aggressive now. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since early July and just turned upwards for a fresh outright buy signal.
In this weekly bar chart of WMT, below, we see a positive looking picture. WMT has been in an uptrend for the past three years. Prices are trading above the rising 40-week moving average line. The weekly OBV line has been rising the past four months and the MACD oscillator is in a bullish alignment.
In this Point and Figure chart of WMT, below, we used daily price data. Here we can see that prices are in an uptrend. The $161 area is being projected as a potential price target.
In this weekly close only Point and Figure chart of WMT, below, we can see the $173 area as a potential price objective.
Bottom line strategy: Continue to hold existing long positions in WMT and aggressive traders could do more buying if they wish. Raise stops to a close below $135 now from below $126. The $161 area and the $173 area are our price targets.
