The charts and indicators of DSW Inc. (DSW) were reviewed last near the end of March where I wrote that "I met Imelda Marcos, the former First Lady of the Philippines, also referred to as "the First Lady of Shoes", at a sugar club dinner many, many years ago. Going long DSW is much easier than getting past the security detail around Mrs. Marcos. Aggressive traders could go long on strength risking below $21 looking to gains to the $26 to $28 area."
DSW reached our targets in July but gapped to the upside yesterday leaving our price objectives in the dust. What should we look for now? Something dresser?
In this daily bar chart of DSW, below, we can see the sideways trend from September to the end of April. In early May prices started an uptrend and yesterday the trend turned up sharply.
Prices are currently above the rising 50-day moving average line and the positively sloped 200-day moving average line.
The daily On-Balance-Volume (OBV) line has been rising the past 12 months telling us that buyers of DSW have been more aggressive with more volume being traded on days when the stock has closed higher.
The trend-following Moving Average Convergence Divergence (MACD) oscillator was correcting lower from late May but turned up sharply yesterday to a new buy signal.
In this weekly bar chart of DSW, below, we went back four years to show the next price target and potential area of resistance. Prices are above the rising 40-week moving average line.
The weekly OBV line made a new high for the move up to confirm the price advance.
The weekly MACD oscillator narrowed earlier this month towards a possible crossover but the indicator turned up again in reaction to the sharp price gain yesterday.
In this Point and Figure chart of DSW, below, we can see a new upside price target or objective of $47.08.
Bottom line strategy: Traders looking to try on a few shares of DSW could go long in the $34-$32 area risking below $27-$47 is our Point and Figure price target, but we might encounter some resistance in the $38-$40 area.