The share price of Action Alerts PLUS holding KSS has weakened the past three weeks and now it looks like prices could trace most of their May/June gains. Let's review our updated charts and indicators to get a feel for how deep this pullback could go.
In the daily bar chart of KSS, below, we can see a mixed picture. Prices are above the rising 50-day moving average line as well as the rising 200-day line. A decline below $67 will likely break the 50-day line. The volume of trading in June has been on the light side but the daily On-Balance-Volume (OBV) line has turned lower telling us that sellers of KSS have turned more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator gave a take profits sell signal in June and is still pointed down.
In this weekly bar chart of KSS, below, we can see the start of weakness. Prices are still above the rising 40-week moving average line but this indicator lags at turning points. The weekly OBV line has turned lower and the MACD oscillator has narrowed again and could cross to a fresh sell signal.
In this Point and Figure chart of KSS, below, we can see a $66.75 price target.
Bottom line: KSS is pulling back and could return to its breakout point around $65. If support does not develop around $65 then a deeper decline could materialize.