Shares of retail giant Wal Mart are heading for their best close of the year.  At mid day the stock is up 1.7% and is beginning to pierce heavy resistance near the $104.00 area.  This key zone capped the February, April and May highs.  Once this area is taken out WMT has plenty of room to run.  Next challenge would be the ugly November peak, a key downside reversal, near $106.00.

Highlights:  WMT is working on its 6th straight higher monthly low, a run that began after the Christmas week lows. 

The daily MACD indicator remains near neutral despite shares sitting at five month highs.  The stock could travel quite a ways before re entering overbought territory. 

WMT has solid support in place between $130.50(last week’s high) and $104.20(February spike high).  

A close back below $101.00 would violate this week’s low sending a clear warning sign that more sideways action may be needed before a fresh rally leg can take hold. 

At current levels we regard WMT as a low risk buy. 

At time of publication we are long WMT in some managed accounts.