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Wal-Mart - WMT - close: 46.58 change: -0.66 stop: 48.01

Company Description:
Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAM'S CLUB locations in the United States. Internationally, the company operates in Argentina, Brazil, Canada, China, Germany, Japan, Mexico, Puerto Rico, South Korea and the United Kingdom. (source: company press release or website)

Why We Like It:
WMT's recent comments that the rising price of fuel was hitting their customer's pocket books helped ignite the sell-off in retail stocks. The announcement also restarted concerns that rising energy prices would indeed slow down the U.S. economy. Shares of WMT gapped down on its earnings report and now the stock is testing support in the $46.00-46.50 region. We believe that if WMT breaks down under support at the $46.00 mark it could start a new leg down and carry it toward the $42-40 range. The P&F chart for WMT already points to a $37.00 target. We are going to suggest a trigger at $45.95 to open the play. Our official target will be the $42.25-42.00 range. More aggressive traders can watch for a bounce back toward $48 and short any failed rally there. Our time frame is eight to ten weeks.

Picked on August xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 08/16/05 (confirmed)
Average Daily Volume: 10.2 million
 

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