I first looked at and recommended Five Below, Inc. (FIVE) ahead of last year's Black Friday, and my bottom line was "FIVE has been trading sideways the past month but I expect it to go higher. Traders can buy FIVE here and risk a close below $53 looking for gains potentially to the low $80's."
With FIVE getting close to our target price let's pay it another visit.
In this updated daily bar chart of FIVE, below, we can see that prices area having a strong upside session today. FIVE is back above the rising 50-day moving average line. The rising 200-day line has not been approached since the end of August.
The daily On-Balance-Volume (OBV) line shows a positive move from August into April followed by a sharp decline. Over the past six weeks the OBV line has been steady. Ideally if the OBV starts to improve again it will help the bull cause.
The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line now but could turn up with stronger prices.
In this weekly bar chart of FIVE, below, we can see that prices are above the rising 40-week moving average line.
The weekly OBV line is positive overall and the weakness in the past two months is not excessive.
The weekly MACD oscillator is pointed down in a take profits mode so we should probably raise our sell stops.
In this Point and Figure chart of FIVE, below, we can see a new upside price target of $87. A trade up at $79.05 is needed to refresh the uptrend.
Bottom line: Considering that I hate to shop, our Black Friday recommendation of last year has turned out great. Longs should raise sell stop protection to just below $70 which should act as support. I would stick to the original game plan and look to nail down some profits in the low $80's in the weeks ahead.