Shares of Macy's (M) rallied sharply the past two to three months. The company has seen better days as it has had to struggle with reinventing itself as the world of retail changed rapidly in the past few years. However, shares of Macy's, which were trading quietly at $6 in October, touched $22 this week.
Let's check out the charts and indicators.
In the daily Japanese candlestick chart of M, below, we can see a large, bearish shooting star pattern on Wednesday. This was followed by a bearish candle on Thursday with an upper shadow and a red (bearish) real body -- this was confirmation of a top reversal. The Moving Average Convergence Divergence (MACD) oscillator has begun to narrow.