It’s been over two decades since giant retailer Wal-Mart saw its stock do this. Share prices have seen gains for over 11 straight days. This is the longest winning streak for the stock since February of 1995.
According to the founder of Strategic Wealth Partners, Mark Tepper, “There’s all this talk about Amazon, and how great Amazon is, but wouldn’t it be great to own Amazon at 15 percent of its price? And that’s what you’re getting with Wal-Mart, because Wal-Mart has taken huge strides in increasing their online presence through acquiring online shopping sites like Jet.com.”
“They’re gearing up to battle Amazon head-on, and whereas Amazon’s price advantage in the past was very strong, it’s weakening,” he said on CNBC’s “Trading Nation,” on Thursday.
In the last month alone, shares have climbed over 7%.
An equity strategist at Miller Tabak, Matt Maley, has said on a short term basis the stock looks overbought. He told
“Trading Nation,” that “It’s getting to the top end of its upward-sloping trend channel. So it might take a little bit of a breather here, but that’s OK, it’s had a nice run.”
“To be honest with you, it’s funny because the entire retail sector on a technical basis looks quite good. I mean, the XRT had made a double-bottom back in June and it started to move up highly, making a couple of higher highs and higher lows. If it could move above its early June lows, above $41.60-ish, that’s going to give it real momentum that’s going to get the group to move even higher,” Maley said, referring to the popular retail exchange-traded fund. A so-called double-bottom is considered a positive sign in technical analysis.
Disclaimer: We have no position in Wal-Mart Stores Inc. (NYSE: WMT) and have not been compensated for this article.