Ollie’s Bargain Outlet ($OLLI) Consider Buying the Dip

Ollie’s Bargain Outlet is down about 8% from its intra-day high in the after hours session after reporting an earnings beat. ( That’s why I steer clear of Earnings; You just never know )

Ollie’s is a deep discount retailer that operates 277 stores in the SouthEast, Mid-Atlantic, and upper Midwest.  The company is growing like a weed …. just ask Big Lots and the Dollar stores. By all metrics they are killin’ it.

I am far from a fundamental analyst so I will leave it there.  But if you are into that sort of thing, I encourage you to visit their website, do your due diligence, and dive into the story. From a strictly technical perspective, Ollie’s has given very few dip buying opportunities over the past 30 months.  One look at the weekly chart below should convince you of that. Yes its extended and in the upper half of the channel but its been walking the upper Bollinger Bands the whole way. You can see the Weekly RSI living in the power zone for months and months.  I think it will continue to be a strong retail name that outperforms both SPY and its retail peers.

The Trade
I don’t blindly buy anything but will be watching this closely. I gotta feeling that this AH move will be bought.  My hope is that some longs will do some additional selling tomorrow. If that happens, I plan to nibble on some LEAP options out in time and let OLLI continue to do its thing.  Be nimble tomorrow and the days ahead; look for a long entry.  No need to go bananas but if you are light on Retail Sector names, there are far worse places to be.

Good Luck, Hope it helps.

Note:  Have a Stock you want me to cover off?  Shoot me an email at [email protected]   I will be glad to respond either privately or post the charts here for others to learn from.

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