Kohl's Corp. (KSS) was reviewed recently, where I wrote that "KSS made a top pattern from June and the likely close Tuesday below $69 will generate several sell signals. My downside price target is $55 for now." KSS has weakened but our $55 price target has not been reached.
Should we stick with our strategy or make a change? Let's check the latest charts.
In this updated daily bar chart of KSS, below, we can see that prices have spent a few days below the cresting 200-day moving average line. The 50-day line has a negative slope.
The daily On-Balance-Volume (OBV) line has softened and the MACD oscillator is below the zero line. Mostly bearish.
In this weekly bar chart of KSS, below, we can see that prices are below the cresting 40-week moving average line.
The weekly OBV line is still pointed up but off its best level.
The MACD oscillator is pointed down towards the zero line.
In this Point and Figure chart of KSS, below, the computer has generated an upside price target close to $79. A rally to $69.45 is needed to improve the chart, in my opinion, and a decline to $63.50 is likely to weaken this chart.
Bottom line strategy: KSS did not get dusted in October and November like many tech names but it has generated a number of sell signals. It may be time to take the Kohl cash and run.