Buffett Doubles Wal-Mart Shares

Warren Buffett doubled in Wal-Mart shares for the Berkshire investment. This addition shows that Buffett has a very strong bet on Wal-Mart because there is a larger appeal to the consumers for low prices especially in this down economy. WMT is currently trading 15 times earnings and they recently reported 22% increase in their 4th quarter profit.

In looking at 2 year chart, WMT has broken the downward resistance line during the second half of 2009 and now has formed an upward support line. $55 represents the resistance level that WMT needs to break in order for it to gain more positive momentum as it will trade beyond $60. However, a break in this upward support line could mean a quick down turn in WMT and could head below $50.