Macy's Needs to See Renewed Strength in the Short-Run

 | Mar 19, 2018 | 1:30 PM EDT
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The charts and indicators of Macy's (M) were reviewed last week, and I wrote, "prices have staged a nice turnaround from the nadir of November. The sideways price action of March is likely to result in another upside breakout and new highs for the move up. Longs should raise sell stop protection $24 now from below $22. $35 is the next upside price target I see when I look at the weekly bar chart." In the past few days M has drifted slightly lower on light volume. Let's check and see if this changed any of our indicators.

In this daily bar chart of M, below, we can see that M is still above the rising 50-day moving average line. The slower-to-react 200-day line is still moving upward.

The daily On-Balance-Volume (OBV) line is showing only slight weakness the past few days. The Moving Average Convergence Divergence (MACD) oscillator crossed to the downside for a take profits sell signal.

In this weekly chart of M, below, we can see that prices are above the 40-week moving average line as it has started to turn up. The weekly OBV line continues to move in a higher direction and the MACD oscillator is still bullish.

In this Point and Figure chart of M, below, we can see an upside price projection of $31.78 which would be a new high for the move up. A decline to $28.36 or to $27.53 will turn the chart lower.

Bottom line: The weekly chart of M looks like a respectable base but the daily chart shows a pullback. M could break out to the upside but weakness under $28 is going to retard any bullish move for a while.

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