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TRADE ALERT- Citigroup Says to Buy Dollar General and Wal-Mart

Zemanta Related Posts ThumbnailAccording to a note by Citigroup (NYSE: C), Dollar General (NYSE: DG) and Wal-Mart (NYSE: WMT) are buys at these levels. The firm believes that as the market looks uncertain, these names could make great defensive stocks along with their reliable cash generation.

Wal-Mart has recently seen a sell off from a high around $78 to $73.44–not far from its 200 day moving average and well below its 50 DMA at $75.81. The stock appears stable as it has tested and held the 200 day twice.

Dollar General recently tested it 50 day moving average after it failed to break out of its early July top of $55.80. It formed a double top and sold off. Now, it appears to be making another run for the $55.80 level, staging a sharp rally higher from $52.40. If it can break $55.80, the stock could rally much higher.

[stock-tools exchange="NYSE" symbol="DG" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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