Retail stocks.
The retail stocks got hammered the last few weeks, and the bashing accelerated last Friday. These stocks are probably more sensitive to rising interest rates than many technology companies, but at some point, retail stocks will be a good buy. I looked at the charts of 30 retail stocks and picked out my favorites based solely on the charts. I don't think that these are buys on Monday morning, but they might be getting close to a short term trading opportunity.
ANN, closed at 23 13/16, 19 1/2 to 21 1/2 entry target...made a multi-year high at 53 last May.
AZO, closed at 28 1/4, might be good here with a close stop. The stock filled a gap between 28 and 29 1/8 last Friday that was left on its rally to ~33 in December. The stock is trading on a trend line drawn over weekly lows going back to Aug 99. Very strong support at about 23, and definitely a buy if it gets there.
CLE, closed at 19 15/16, good support near current price. Might be a good buy with a close stop, next support near 15 even a better buy.
IBI, closed at 32 1/4, chart support 29 to 30 and this stock is extremely oversold on the daily chart. If it starts to base, or trades to support, I will probably take a position in this stock. The DMI is +DI 2, -DI 42, ADX 71...which is indicative of a downside extreme.
LTD, closed at 33 5/16, this stock held up better than most retailers on Friday. Like IBI, it is extremely oversold on the daily chart. Thursday's DMI +DI 1, -DI 44, ADX 79. Friday's DMI +DI 2, -DI 36, ADX 80. Looks like a good buy with a stop below Thursday's low of about 32 3/4.
PBY, closed at 7 11/16. This stock is trading at a multi-year low going back to at least Oct 91 (as far back as my charts go). Since it is making multi-year lows, it doesn't have chart support, but it's worth watching for signs of a base.
PETM, closed at 4 15/16. Support at about 4 1/2, resistance 5 1/2 to 6. I like this stock only because it has a fairly predictable, wide % trading range. There's not enough volatility to day trade it, but 10% every few weeks isn't bad.
RL, closed at 15 1/2, has some support at about 15.
SKS, closed at 15, plenty of support 14 1/2 to 15, not as much volatility as many retail stocks in the past three or four months...this might be a good buy/hold for a few months...seems to have found a base and has good upside potential.
TIF, closed at 79 1/2, triple bottom possibility between 75 and 76.
TOM, closed at 13 13/16, support 11 to 12 ish, trading at 5 year low on profit warning and downgrades Jan 13. Extremely oversold daily chart with +DI 1, -DI 53, and ADX 83. Worth a watch for a base or turn.
Others that I looked at include ASHW, BBY, BBBY, BCF, CC, CPU, DH, GRDG, GPS, GYMB, HD, HRSH, LOW, MAT, PAUH, PETC, PIR, TAN, and TOY.
Comments to these or other retail stock welcome.
Dan |
