The stock of Kohl's Corp. (KSS) is still bearish. Prices declined sharply over the past two weeks and a lot of technical damage has been done.
Let's check out the latest charts and indicators to see how much damage has been done to this Action Alerts PLUS holding.
In the daily bar chart of KSS, below, we can see a double top in September and November or even a triple top of sorts from June. Prices gapped below the chart support around $70 and the cresting 200-day moving average line earlier this month. The slope of the 50-day moving average line has been bearish since early October.
Volume increased on the recent break of the 200-day line and the daily On-Balance-Volume (OBV) line weakened telling us that sellers of KSS had become more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator moved below the zero line for an outright sell signal.
In this weekly bar chart of KSS, below, we can also see technical weakness. Prices are below the cresting 40-week moving average line. The weekly OBV line has been unable to move higher for months and the MACD oscillator is pointed down towards the zero line.
In this Point and Figure chart of KSS, below, we can see a downside price projection of $56. A rally above $67.41 is needed to pull KSS back from the edge.
Bottom-line strategy: Despite the cash registers ringing up big Black Friday sales the charts and indicators of KSS are vulnerable to further declines. Bounces are likely to fail.