We last looked at Five Below, Inc. (FIVE) in early June, noting that, "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."
In the past three months FIVE has soared higher with a huge gap up from $80 to $95. After a two-month consolidation pattern around $100 FIVE has resumed its climb. Let's check out the charts and indicators to see if there is more on the upside for this retailer.
In this daily bar chart of FIVE, below, we can see that prices are above the rising 50-day simple moving average line. The 200-day moving average line has been positive for the past 12 months.
The daily On-Balance-Volume (OBV) line has been rising for most of the past year but there was a dip from April to early June.
The Moving Average Convergence Divergence (MACD) oscillator turned bullish again in early August.
In this weekly bar chart of FIVE, below, the price gap disappears because of the way this kind of chart is constructed using the high, low and close for the week. Prices are above the rising 40-week moving average line.
The weekly OBV line has been firming the past two months and the weekly MACD oscillator is bullish and pointed up.
In this Point and Figure chart of FIVE, below, we can see an upside price target of $139.32.
Bottom line strategy: If you are still long FIVE that is great. I would raise sell stop protection to just below $100 from below $70. Looking to go long FIVE? I would try to buy a dip towards $110 risking below $100 with $140 the next price target.