When reviewing Nordstrom Inc. (JWN) in June, I wrote that, "Overall the charts and indicators for JWN look positive. JWN may be dragged lower with the broad market but an upside breakout is anticipated. Go long above $54 looking for $67 and risking to $49."
Traders who followed that advice should be long. With prices surging recently and now closer to our $67 price target a fresh look at the charts is in order this Action Alerts PLUS holding discussed by Jim Cramer Monday night on Mad Money.
In the updated daily bar chart of JWN, below, we can see that prices broke out over the highs of 2018 and volume was heavy. JWN is above the rising 50-day moving average line and the bullish 200-day line.
The daily On-Balance-Volume (OBV) line surged to a new high for the move up telling us that buyers are more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator turned up to a fresh outright go long signal.
In the updated weekly bar chart of JWN, below, we can see that prices are testing the highs of 2016 and emerging from a 2-1/2-year base pattern. Prices are above the rising 40-week moving average line. The weekly OBV line has been showing strength the past three months and from 2016.
The weekly MACD oscillator has turned up again from above the zero line -- bullish.
In this Point and Figure chart, below, we can see the breakout at $60 and new upside price target of $81. The last target was $67.
Bottom-line strategy: Traders who are long from my recommendation or just long could raise stop protection to the breakout point at $54. My price targets are $67 and now $81.