My first experience with Dillard's Inc. (DDS) was in large fading mall on Wanamaker Blvd. in Topeka, Kansas about twenty-five years ago. The large mall was no longer attracting customers unlike the large Walmart (WMT) that was close by. I have looked at the stock of Dillard's a few times in the past four years and unfortunately every time I see a bearish picture. Let's take one more look this morning as our own Jim Cramer surveys the retail scene.
In the daily bar chart of DDS, below, we can see that prices can swing up and down but over the past twelve months it has lost significant ground. DDS is below the declining 50-day moving average line and the 200-day line. Trading volume is a little erratic but we can see heavier volume when prices have gapped up or down.
The daily On-Balance-Volume (OBV) line has moved up and down with prices but its recent July-August decline has taken the indicator to a new low. The Moving Average Convergence Divergence (MACD) oscillator has turned down to a sell signal this month.
In this first weekly bar chart of DDS, below, we can see that prices are below the declining 40-week moving average line. Prices are testing the lows of early 2017.
The weekly OBV line is pointed down telling us that sellers of DDS are more aggressive and the MACD oscillator is also bearish.
In this long-term weekly bar chart of DDS, below, we can see that below the 2017 low it could be a hard drop to the 2008-2009 nadir.
In this weekly Point and Figure chart of DDS, below, we can see a tentative long-term price objective in the $9 area -- a serious markdown in price from current levels.
Bottom-line strategy: DDS has declined sharply this month so a knee-jerk rally could happen at any time; however, any bounce is likely to be short-lived. Further losses are anticipated. Avoid.