DSW Inc. (DSW) has been stalling around the $22 area for months, but a recent upside breakout on our Point and Figure chart suggests that DSW will be more comfortable in a bigger, more bullish size. Let's see how we size up the charts and indicators.
In this daily bar chart of DSW, below, you can split the chart in October. Before October DSW was in a downtrend trading below the declining 200-day moving average line.
The daily On-Balance-Volume (OBV) line was flat and the Moving Average Convergence Divergence (MACD) oscillator spend most of its time below the zero line. Since October DSW has more time above the bottoming 200-day line. Declines below the 200-day have turned out to be buying opportunities.
The daily OBV line has been rising since September and tells us that buyers of DSW have been more aggressive than before September. The MACD oscillator is now in a bullish mode - rising and above the zero line.
In this weekly bar chart of DSW, below, we can see how the slope of the 40-week moving average line has changed from negative to neutral to rising. The weekly OBV line looks like it made its low in August and has improved. The weekly MACD oscillator is above the zero line in a bullish configuration.
In this Point and Figure chart of DSW, below, we can see a price breakout at $22.34 and an upside price target of $26.24 being projected.
Bottom line: I met Imelda Marcos, the former First Lady of the Philippines, also referred to as "the First Lady of Shoes", at a sugar club dinner many, many years ago. Going long DSW is much easier than getting past the security detail around Mrs. Marcos. Aggressive traders could go long on strength risking below $21 looking to gains to the $26 to $28 area.