3 Must-Watch Levels For Wal-Mart Stores, Inc., Tiffany & Co. Traders

WMT and TIF are close to technical levels that could determine their near-term fates

Dec 29, 2016 at 3:11 PM
facebook X logo linkedin


In recent week, we've been looking closely at stocks approaching key retracement and Fibonacci levels, which often signal a pending change of direction. Not long ago, several miners were drawing near to these technically significant areas. This time around, a number of retail stocks caught our attention, including Wal-Mart Stores, Inc. (NYSE:WMT) and Tiffany & Co. (NYSE:TIF).

At $69.30, WMT is approaching not one, but two, key retracement levels. Below, you can see the stock is hovering just below the 38.2% Fibonacci retracement of its early 2015 highs and late-2015 lows, which sits a hair south of the round-number $70 level. With peak call open interest at the overhead January 2017 70 and 72.50 strikes -- totaling roughly 56,000 contracts -- the shares could be staring up at several layers of resistance in this region.

wmt weekly dec 29

That said, Wal-Mart Stores, Inc. could also be approaching a foothold. Taking the chart back a bit farther to the financial crisis, the stock is nearing the 50% retracement of its 2009 low and 2015 high, located just south of $69. In fact, the shares have tested this level several times in the last two months, before successfully settling above it -- a more encouraging sign for bulls.

wmt monthly dec 29

Turning to TIF, the stock has been in free-fall since its Dec. 8 high at $85.44, last seen at $77.53. Even yesterday's bull gap by this luxury retailer failed to bolster Tiffany shares. Things could get even worse next month, too. Based on this study, the shares have been positive in just two of the past 10 Januaries. On average, TIF has lost 7.3% during the month, over the last decade.

But not all hope is lost. Currently, Tiffany & Co. is testing the 38.2% retracement of its early 2015 high and mid-2016 low, which hasn't been breached on a weekly closing basis in over a month. In November, in fact, TIF stock bounced from this level to make a run at $85, which eventually ran out of gas. In other words, traders will want to keep an eye trained on this area to see if it holds through week's end, or shows signs of giving out.

tif weekly dec 29

Let us help you profit from market volatility. Target big gains in short order with a 30-day trial of Schaeffer's Weekly Volatility Trader!

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI