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May 02, 2006

RTH Challenges Resistance

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Can Retail recover? The Retail HOLDRS (RTH) got a lift from Wal-Mart yesterday and gapped up for the second time in two weeks. The move off support is positive and allows for the third fan line to be drawn. For now, I view this as a consolidation (gray oval) after the support break at 97.5 in mid April. The stock established resistance at 98 and needs to close above this level for this bounce to be taken seriously.

Posted by Arthur B. Hill at May 2, 2006 07:34 AM

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