Macy's, Inc. (M) was reviewed last week and I recommended that, "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."
M has soared northward in recent days so we can "tweak" our strategy.
In this daily bar chart of M, below, we can see that the rally in M has turned a little "parabolic" in recent weeks. M is above the rising 50-day moving average line and the positively sloped 200-day line.
The daily On-Balance-Volume (OBV) line has been moving up with the price action since early November. Buyers of M have been more aggressive for the past seven months.
The trend-following Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in late November and has been strong ever since.
In this updated weekly bar chart of M, below, we can see a saucer-like base pattern since early 2017. Prices are comfortably above the rising 40-week moving average line.
The weekly OBV line has been moving up since late October and it just registered a new high for the move up.
The MACD oscillator on this longer time frame is also bullish and pointed still higher.
In this Point and Figure chart of M, below, we can see an upside price target of $46.50 being projected.
Bottom line: The rally in M is steep and could be considered extended. Because of the strong position of the indicators M may only see a sideways correction. If you are looking to start buying M or looking to add to longs I suspect that you will have to pay around $40 and orders much below the market will go unfilled. Stop protection could be raised to $33 from $31. The $46-$47 area is our next price target.