During Friday night's "Mad Money" program, viewers learned that retail earnings will continue on this Thursday with Ross Stores Inc. (ROST) and some other retailers. Cramer was bullish on ROST. Let's check out the charts of this retailer.
In this daily bar chart of ROST, below, we can see that prices have worked higher the past 12 months. Prices are above the rising 50-day moving average line and the rising 200-day moving average line. The daily On-Balance-Volume (OBV) line has been in a sideways neutral trend from May to October, but the line has turned higher telling us that buyers of ROST have turned more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero-line since the middle of June and tells us that the trend has been bullish. A new buy signal could evolve soon if the earnings numbers on Thursday are bullish.
In this weekly bar chart of ROST, below, we can see that prices have doubled in the past three years and ROST is above the rising 40-week moving average line. The weekly OBV line has been rising for about two years, telling us that buyers of ROST have been more aggressive for much of the rise. The MACD oscillator has been bullish this year and is still pointed up.
In this Point and Figure chart of ROST, below, we can see that a trade at $115.37 will be an upside breakout and a potential price target of $132 can be seen.
Bottom line strategy: Traders who are comfortable risking below $108 could go long ROST ahead of earnings expected this Thursday. The $130-$135 area is our price target.
