Chico's FAS Inc. (CHS) looks like it has been building a base pattern over the past few months. Let's try on the latest charts and indicators to see what might fit -- bull or bear.
In this daily bar chart of CHS, below, it shows that prices have been making what appears to be a base pattern the past eight months or so. The bottom of the pattern is around $7 and that level was tested several times in August, October and November. On the top end of the pattern the $10.00-$10.25 area has marked the top of the pattern. Since late November CHS has been trading above the rising 50-day simple moving average line. In January CHS rallied to close above the still declining 200-day line.
The On-Balance-Volume (OBV) line started to turn higher in early November as buyers of CHS became more aggressive with heavier volume being transacted on days when the stock closed higher. A rising OBV line tells us that a company's stock is under accumulation or buying. The trend-following Moving Average Convergence Divergence (MACD) oscillator turned positive at the end of November and is poised now for a fresh outright go long signal.
In this weekly chart of CHS, below, we can see that the market place has not been kind to CHS the past three years. Prices are above the declining 40-week moving average line. The weekly OBV line shows a slow rise from July as prices began their bottom pattern. The weekly MACD oscillator is very close to crossing above the zero line for an outright go long signal on this time frame.
In this Point and Figure chart of CHS, below, we can see the pattern of higher lows and higher highs since 2017. A trade at $10.28 on this chart will be a bullish breakout and give us an initial upside price target of $11.26. This is just a 10% move but the weekly bar chart (above) shows that there is no significant overhead resistance until the $13 area.
Bottom line: CHS has been out of favor for a while but aggressive traders could go long CHS on strength above $10.28 looking for gains to $11.26 and then $13.00. Risk a close below $9.00.