We reviewed Kohl's Corp (KSS) in early November, saying, "It will take a few days to find out and decide if today's down to up move will carry through to the upside or whether it fizzles and the decline continues." Now that we have three weeks of price action behind us we know now that the reversal we saw on November 9th was valid and with prices trading above the September highs we can talk about a breakout from an 11-month base pattern. Let's jump into the latest charts and indicators.
In this daily bar chart of KSS, below, we can see that Nov. 9 was a pivotal day, when prices successfully tested the slightly rising 200-day moving average line. Prices held steady for a few days and then began to rally. KSS is now above the rising 50-day moving average line, along with the 200-day line.
The daily On-Balance-Volume (OBV) line has been bullish since mid-August and over the past couple of weeks, it has made new highs for the move up -- bullish! The Moving Average Convergence Divergence (MACD) oscillator has crossed above the zero line this month for an outright go-long signal.
In this weekly chart of KSS, below, we can see that prices are above the rising 40-week moving average line and the base pattern extends back to mid-2015. The weekly OBV line just pushed up to a new breakout high and the weekly MACD oscillator is bullish.
In this Point and Figure chart of KSS, below, we can see the breakout trade at $48 and a potential upside price target of $71.
Bottom line: The charts of KSS is proving that some parts of retail are not dead. Trade KSS from the long side risking a close below $43.