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Chartology: Consumer Breaking Out

Is the consumer in better shape than previously expected or are they about to go back into hibernation? Find out what patterns in the charts suggest.

For insights we turned to MKM Partners technical analyst Katie Stockton who told us she’s spotted a bullish pattern in the retail index.

S&P Retail Index (RLX)

Symbol
Price
 
Change
%Change
.RLX
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Stockton: It looks to me like 314 is a point of resistance and patterns in this chart suggest it could be about to breakout -- possibly as high as 430. I think it's a buy on any pullback.

Adami: I don't buy it. I think a lot of the stocks in the index are now fairly priced. If you get in now you're getting in late.

Wal-Mart (WMT)

Symbol
Price
 
Change
%Change
WMT
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Stockton: It’s not a buy at current levels, but Wal-Mart made support at $47. I’d get long on a pull back.

To see more of Stockton's analysis please watch the video.

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Trader disclosure: On Apr. 16th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (AAPL), (BAC), (EEM), (FCX), (GE), (RIG), (TCK); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Finerman's Firm Owns (UNH), (MSFT), (RIG), (PBR), (CSCO); Finerman's Firm Owns (WFC) Preferred; (C) Preferred; (BAC) Preferred; Finerman Owns (BAC) Preferred; Finerman's Firm Is Short (BAC), (WFC), (MDY), (SPY), (USO), (IWM), (IJR), (C); Najarian Owns (BX) Call Spread; Najarian Owns (PALM); Najarian Owns (RIO) Calls; Najarian owns (VAR) Call Spread; Najarian Owns (XHB) Call Spread; Najarian Owns (NTAP)