Stock Up On Walmart This Holiday Season – WMT

It seems like winter hits and suddenly the good times are behind us. Whether this is just a mild pullback or another prolonged bearish run, the fact remains that, as the holiday season is upon us, more and more people will begin to feel the crunch.

Lets face it… while some people might believe the economy is getting better unless employment can somehow miraculously get fixed we won’t be making any major strides in the positive direction.

All this being said, there have to be some stocks that benefit from this.

Well one BIG stock we will be looking at today is Walmart (WMT). Just look at the chart for a second and see if you can notice anything specific here…

Walmart was at its highest points last winter and pretty much fizzled for much of 2009, which coincidentally falls between the same time as our recent bull rally we experienced.

Breaking out the fibonacci retracement tool, we can see Walmart is on the cusp of breaking over the 62% line, which could end up in some nice moves for the discount retailer.

Now before we got all hyped up about this stock, remember that Walmart is not necessarily the biggest mover. Odds of making 20+% returns with this stock are somewhat rare, but at least we have the possibility of a solid winner here.

If we get confirmation of Walmart staying above the 62% line, then we have a nice little trading range between $53 – $58.

What stocks are you looking at this winter?