We looked at Kohl's (KSS) just last Tuesday, and offered some updated guidelines: "KSS is likely to continue to trade in a sideways market, but the new parameters are going to be $44 on the topside and $36 on the downside. A weekly close below $35 would be bearish, and a weekly close above $45 would be bullish."
One week later and KSS is down near $36 and we run the risk of a weekly close below $35. Dips below $36 in May and June were bought and a dip toward $36 was bought in early July so we don't want to get ahead of things.
In this daily bar chart of KSS, above, we can see that it took two months for KSS to rally from $36 to $44 and less than a month for it to retreat back down again. That is not a description of a strong market, in my opinion. Prices are back below the declining 200-day moving average line and the cresting 50-day line.
The daily On-Balance-Volume (OBV) line also took a while to go up to its early August peak and half the time to decline back down. The daily Moving Average Convergence Divergence (MACD) oscillator is slipping below the zero line for an outright sell signal on this time frame.
We are finding mixed signals on this weekly chart of KSS, above. Prices are below the declining 40-week moving average line after a recent test from the underside. The weekly OBV line has moved up and down with the price action. The Moving Average Convergence Divergence (MACD) oscillator has started to narrow toward a possible or potential bearish crossover.
In this Point and Figure chart of KSS, above, we can see a broad sideways trading pattern that is more bearish than bullish at this point in time. There is a possible downside price objective noted as $33 on the chart.
Bottom line: The short-term price action in KSS is still touch and go. KSS may again find buyers around $36, but in this current weak equity market environment there are no guarantees.