KMART: flag pattern
2 mensagens
|Página 1 de 1
KMART: flag pattern
Fechou na sexta-feira nos 82.08 $USD, a romper a bandeira...não vou entrar por falta de liquidez, mas parece ser uma boa aposta.
Blue Light Special For Kmart Bulls
Matt Rand, 08.26.04, 4:00 PM ET
NEW YORK - For years, Kmart suffered as Wal-Mart steadily encroached on its discount retail turf. But since emerging from Chapter 11 bankruptcy in 2003, Kmart has slimmed down its operations and grown its cash hoard to $2.6 billion by selling off real estate to retailers like Sears Roebuck and Home Depot. And Kmart's shares have been especially strong performers: up 170% in the last year. From a technical perspective, Kmart still looks mighty bullish.
Since August 16, when Kmart (nasdaq: KMRT - news - people ) jumped 17.2% to $76.05 on news that it earned $155 million in the second quarter (compared to a $5 million loss the year before), the big K's stock price has remained steady in the $76-$78 range. And volume has tapered off in the last two weeks from 11.2 million to 1.8 million shares per day. Dan Zanger, editor of Chartpattern.com, says that's a bullish flag pattern. "The horizontal movement is the flag and then the move up is the pole," says Zanger.
Zanger points out that Kmart formed a similar flag pattern in the $50 range in late May. The breakout from that level sent the stock into the mid-60s in just a couple of weeks. But Zanger cautions that the flag pattern in May consisted of a much tighter consolidation than the stock has had in the past few weeks, and that made a bullish move seem more likely.
One factor the current flag has going for it, however, is the formation of a double bottom over the past six weeks. While technical analysis pioneers John Magee and Robert Edwards say a double bottom occurs only when the two bottoms are at least a month apart, Zanger thinks Kmart's successful retest of lows is a valid double bottom.
Zanger also says it's a good sign that the second bottom was lower. "It's a whammy effect when it undercuts the prior low," he says. "Because when it undercuts, it shakes out the last of the weak holders and you also get more shorts entering in positions, thinking the stock's going to break down." So whether there's a rally based on retail trends, a short squeeze or more good news from the company, Zanger believes this is a good time to get in.
Blue Light Special For Kmart Bulls
Matt Rand, 08.26.04, 4:00 PM ET
NEW YORK - For years, Kmart suffered as Wal-Mart steadily encroached on its discount retail turf. But since emerging from Chapter 11 bankruptcy in 2003, Kmart has slimmed down its operations and grown its cash hoard to $2.6 billion by selling off real estate to retailers like Sears Roebuck and Home Depot. And Kmart's shares have been especially strong performers: up 170% in the last year. From a technical perspective, Kmart still looks mighty bullish.
Since August 16, when Kmart (nasdaq: KMRT - news - people ) jumped 17.2% to $76.05 on news that it earned $155 million in the second quarter (compared to a $5 million loss the year before), the big K's stock price has remained steady in the $76-$78 range. And volume has tapered off in the last two weeks from 11.2 million to 1.8 million shares per day. Dan Zanger, editor of Chartpattern.com, says that's a bullish flag pattern. "The horizontal movement is the flag and then the move up is the pole," says Zanger.
Zanger points out that Kmart formed a similar flag pattern in the $50 range in late May. The breakout from that level sent the stock into the mid-60s in just a couple of weeks. But Zanger cautions that the flag pattern in May consisted of a much tighter consolidation than the stock has had in the past few weeks, and that made a bullish move seem more likely.
One factor the current flag has going for it, however, is the formation of a double bottom over the past six weeks. While technical analysis pioneers John Magee and Robert Edwards say a double bottom occurs only when the two bottoms are at least a month apart, Zanger thinks Kmart's successful retest of lows is a valid double bottom.
Zanger also says it's a good sign that the second bottom was lower. "It's a whammy effect when it undercuts the prior low," he says. "Because when it undercuts, it shakes out the last of the weak holders and you also get more shorts entering in positions, thinking the stock's going to break down." So whether there's a rally based on retail trends, a short squeeze or more good news from the company, Zanger believes this is a good time to get in.
- Anexos
-
- KMART by Zanger.JPG (37.07 KiB) Visualizado 186 vezes
-
- Mensagens: 596
- Registado: 11/8/2004 10:39
2 mensagens
|Página 1 de 1
Quem está ligado: