Macy's (M) was reviewed earlier this month, and I gave this recommendation, "M has made a significant recovery from the November low. Prices have almost doubled. Because daily and weekly momentum has slowed I would look for a period of sideways trading between $35 and $30 until another upside attempt is mounted by the bulls." It has only been two weeks since our review but let's pay another visit to the charts.
In this update daily bar chart of M, below, we can see that prices have pushed up to around $36 and look a little extended when compared to the rising 50-day moving average line. The 200-day average line is still bullish. The daily On-Balance-Volume (OBV) line has moved up to a new high this month to confirm the bullish price action. The Moving Average Convergence Divergence (MACD) oscillator is still in a bullish mode.
In this weekly bar chart of M, below, the price action and indicators are still bullish. Prices are above the rising 40-week moving average line. The weekly OBV line is pointed up and the MACD oscillator on this longer time frame is also bullish.
In this Point and Figure chart of M, below, we can see an upside price target of $40.45.
Bottom line: The charts of M look bullish but the stocks of the retail industry have been seeing both gaps to the upside and to the downside. Keeping that in mind I would recommend raising stop protection for traders to $31.