This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Huge Stocks to Trade in May


Wal-Mart ( WMT) is taking a breather this week, consolidating sideways after a swift rally from the mid-$60s. Even though WMT's recent price action hasn't exactly been riveting lately, there's still a trade to be made in this retail mammoth.

Wal-Mart's price action has been constrained within a rectangle pattern since the uptrend turned sideways. A rectangle is a pattern that's formed by two horizontal price levels: resistance above shares at $79 and support below at $77. Rectangles give traders a chance to catch their breath and figure out their next move after a big share price change. As a result, it makes sense to make a bet in the direction of the breakout from the channel.

>>5 Hated Stocks That Could Pop in May

Since this consolidation is coming after a prolonged uptrend, Wal-Mart looks likely to resume upside once this rectangle has run its course. Momentum backs that up -- 14-day RSI has been in an uptrend since November, and it looks like it's just starting to bounce off of its trend line. Since momentum is a leading indicator of price, that's a good sign.

I'd recommend keeping a close eye on $79 in May.
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
SPY $201.20 0.90%
ZNGA $2.46 2.07%
AAPL $109.50 -1.16%
FB $92.47 0.08%
WMT $66.88 0.78%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs