The stock market was trashed Monday. Did I say trashed? Children's Place (PLCE) had a huge outside day, with a higher close, while much of the rest of the market was trashed.
In this chart of PLCE, above, we can see the big outside day. Also, we can see the improvement in the On-Balance-Volume (OBV) line for the past two months. We see no bearish divergences between the price action and the momentum study. The 50-day and 200-day moving averages are poised to narrow. Prices are probably going to challenge the 200-day moving average -- at around $60.
In this longer-term chart of PLCE, above, we can see the OBV line improving. The Moving Average Convergence Divergence (MACD) oscillator just gave a cover-shorts signal. Prices of PLCE could easily test the 40-week moving average. Also, we see a pennant formation on this chart which projects upward into the $60 to $65 area.