The Apparel Retailing Sector ( $DJUSRA ) has been in zoom-zoom mode for about the last month. Rather than trying to hop on late to some of the racing apparel names, I went searching for set ups in names within the group that have been lagging. Often times strength within the group will lift these heavier boats within the rising tide.
A name and set up I came across is Nordstrom’s ( $JWN)
The Technicals look Bullish
Here are the key take-aways from the charts.
- Both the Daily and Weekly price action are in snyc.
- RSI has broken trend line resistance to the upside in both charts
- Momentum on the Weekly PPO indicator has been steadily rising for 2 years
- Both Daily and Weekly momentum on the PPO are above zero line which is bullish
- ADX indicator just broke above 20 on the Daily Chart indicating that a new trend is emerging.
- Price on both the Daily and Weekly charts are on the verge of breaking out.
Please refer to the Daily chart on Top and Weekly Chart below for further detail.
I want to see price cleanly take out the last bit of resistance before I get long. That will give me a clear line to shoot against and a place to set a stop. I have an alarm set at $53.50. If reached, I plan to target the Jul 52.50 Calls which are presently priced at $2.38. My First target is $56. My second Target is the measured move from the recent consolidation which is $59-$60. JWN’s Earnings have already cleared and they are not scheduled for the next ER announcement until mid August.
With the FED scheduled to come out with their proclamations this afternoon, I wont be adding this or any other positions until that risk, however small, clears.
Good Luck, Hope it Helps!
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