NEW YORK (TheStreet) -- The largest retailer in the world and Dow component Wal-Mart (WMT) had a pre-holiday run-up in 2013 run-up in 2013 the led to a an all-time intraday high, then corrected in February on disappointing 2013 holiday season. Let's look at the charts to see whether the stock is still tradable.
This stock has a trading range that can be traded, as the retailer is not a candidate for a "buy and hold" portfolio. Wal-Mart reports third quarter earnings before the opening bell on Thursday and the stock can see a jolt of volatility in reaction to positive or negative results and guidance.
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The key trading levels for Wal-Mart establish the following trading strategies for the stock.
Investors should enter a "good 'til canceled" limit order to buy weakness to a key technical level at $72.95. To protect gains investors should consider employing a sell-stop below another key technical level at $77.45.
The stock has stalled several times above $79.00, then declined below $73.00 multiple times before rebounding again. This is the overall trading range at maintains in play.
Here's the daily chart for Wal-Mart that justifies this "buy and trade" strategy.
Courtesy of MetaStock Xenith
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