Kohl's Corp. (KSS) was reviewed at the beginning of the year and I recommended that traders should, "Continue to hold longs and I would suggest raising sell stop protection for traders to a close below $53 now."
Traders have had to sit through a sideways trading range market the past four months. Prices have so far been unable to break above the January/February highs. Let's check the latest charts to see if we should stay or go.
(For more on KSS, see Jim Cramer's Dick's Sporting Goods Has the Winning Game Plan for Retailers.)
In this updated daily bar chart of KSS, below, we can see the $57-$70 trading range. Prices are currently above the rising 50-day moving average line but KSS has crossed above and below many times in the past four months.
The daily On-Balance-Volume (OBV) line has been neutral since January but may have turned upwards in the past week.
The Moving Average Convergence Divergence (MACD) oscillator just crossed above the zero line for a fresh go long signal.
In this weekly bar chart of KSS, below, we can see a pattern of the indicators moving more positively. Prices are above the rising 40-week moving average line.
The weekly OBV line is way more positive than the daily line. The weekly MACD oscillator has narrowed and could cross to the upside for an outright go long signal.
In this Point and Figure chart of KSS, below, it shows an upside price target of $85 but we can also see that we need a breakout trade at $69.45.
Bottom line: KSS looks like it wants to break out to the upside to continue the advance but just in case there is a downside reversal I suggest raising stop protection to just below $60 now.
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