• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Five Below Looks Vulnerable Ahead of Earnings

Here's what to do for the foreseeable future.
By BRUCE KAMICH
Nov 30, 2021 | 08:23 AM EST
Stocks quotes in this article: FIVE

The charts of Five Below (FIVE) are looking weak and could suffer another decline that could be precipitated by their next earnings report set for release after the close of trading Wednesday.

 
Let's review the charts and indicators. In our June 3 review of FIVE we wrote that "I have no special knowledge of what earnings for FIVE will be, but the charts and indicators suggest the risk of further weakness in the weeks ahead. Avoid the long side of FIVE for now."
 
In this daily bar chart, below, FIVE traded sideways from early June to late July. An unsustainable rally unfolded in August but by early October the rally and more had been erased. Prices made another rally into November but it has so far stopped at the underside of a resistance zone from August. FIVE is not far above the rising 50-day and 200-day moving averages.
 
The daily On-Balance-Volume (OBV) line has been in a decline from May and shows a lower high in August and a still lower high in November. This pattern and trend suggests more aggressive selling for several months. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a fresh take profits sell signal.
 
 
In this weekly Japanese candlestick chart of FIVE, below, we can see a bearish engulfing pattern this month to mark another top reversal. In August we can see an earlier bearish engulfing pattern. The 40-week moving average line is still positive but the weekly OBV line and the MACD oscillator are bearish.
 
 
In this daily Point and Figure chart of FIVE, below, we can see a potential downside price target of $192.
 
Bottom line strategy: I have no special knowledge of what FIVE is going to report to shareholders on Wednesday but the charts look weak and I would avoid the long side of FIVE for the foreseeable future.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Household Products | Retail | Consumer Products | Consumer Discretionary | Earnings Preview

More from Investing

As Fed Hour Approaches, Bulls Are Believers, Bears Are ... Incredulous

James "Rev Shark" DePorre
Feb 1, 2023 11:58 AM EST

One side has hope the Fed can tame inflation and set up a soft economic landing while the other thinks that expectation is ridiculous. Soon, we'll have some clues about what could play out.

Let's Take Off the VR Headsets Ahead of Meta's Earnings

Bruce Kamich
Feb 1, 2023 11:39 AM EST

The stock has made a big advance ahead of the report.

McDonald's Solid Quarter Hijacked by Trouble on the Horizon

Jonathan Heller
Feb 1, 2023 11:30 AM EST

When the largest restaurant chain -- and 'Big Five' name -- talks you take notice.

What Do C.H. Robinson's Charts Say About the Economy?

Bruce Kamich
Feb 1, 2023 10:48 AM EST

The freight transportation firm reports Q4 earnings after Wednesday's market close.

I Like AMD and Lisa Su Even If the Stock May Need a Trim

Stephen Guilfoyle
Feb 1, 2023 10:45 AM EST

Do not confuse prudent risk management with my not continuing to like this name.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:27 PM EST REAL MONEY

    LIVE EVENT: Chris Versace and "Sarge" Guilfoyle Share Their Stock Market Insights

    This Monday, Jan. 30, at 12 p.m., our very own exp...
  • 11:48 AM EST REAL MONEY

    Watch Doug Kass on the Daily Rundown!

    In today's Action Alerts PLUS Daily Rundown, Doug ...
  • 11:03 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend On Real Money

    It's time to start using this power to build great...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login