Macy’s Is Fighting Back
Dragonfly Capital | Jul 13, 2016 12:52AM ET
Macy’s Inc (NYSE:M) claims to be the World’s Biggest Store. And frankly that has been its problem lately. Oh, not just Macy’s but every department store. The company’s stock has fallen from a high over 73 a year ago to a low under 30 in May. A fall of about 60%.
But since the gap down in May following their last earnings report something changed. The downtrend ended and the price action shifted to a bottoming consolidation. Bouncing off of a resistance zone at the December low, it moved sideways. This was the case until it broke to a higher high on Monday. The bottom may be in.
The chart above shows the break to the upside and movement over the 50 day SMA for the first time in 3 months. The Bollinger Bands® are opening to the upside after a squeeze. The RSI is rising and in to the bullish zone while the MACD has moved into positive territory. An initial target for Macy’s is a move to 39. That would close the gap from May and then some.
But Macy’s is not the only big department store stock that is reversing. Dillards Inc (NYSE:DDS), Nordstrom (NYSE:JWN) and Kohl’s Corporation (NYSE:KSS) have similar charts and broke higher Monday as well. The come back of the department store is underway.
DISCLAIMER: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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