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Wal-Mart Stores Inc (NYSE:WMT) was able to reinvigorate its bullish uptrend on May 18 when it reported better-than-expected earnings and stronger-than-expected comparable store sales in the United States. Now, WMT is breaking out of a “bullish wedge” continuation pattern and is poised to climb even higher.
WMT has been undervalued for some time — following the stock’s dramatic decline during 2015 — and we expect more investors to move back into the stock as it continues to retool in its battle against Amazon.com, Inc. (NASDAQ:AMZN) and as it continues to take advantage of the increased consumer spending that has been driven by improvements in the U.S. economy. We are looking for WMT to challenge resistance at $80 (which was originally established in 2014 and once again in May 2015).
‘Buy to open’ the WMT July 80 Calls (WMT170721C00080000) for a maximum price of $1.20.
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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.
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