Nordstrom Is Getting 'Racked' With Sell Orders: Is It a Bargain Now?

Let's check the charts on the heels of a disappointing earnings report.

Retailer Nordstrom (JWN) is trading lower Wednesday on the heels of a disappointing earnings report for the second quarter. The Seattle-based department store company cut its full-year sales and earnings forecasts after experiencing lower consumer spending "beginning in late June."

Let's check out the fit of the charts and indicators.

In this daily bar chart of JWN, below, we look at the shares over the past 12 months. The shares have largely traded sideways with buying interest coming in around the $20-$18 area. JWN is trading around/breaking the May and July lows even the late February lows. The stock is trading below the declining 50-day and 200-day moving average lines.

The daily On-Balance-Volume (OBV) line shows a rise from March to the middle of August and is now pulling back. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal and maybe soon an outright sell signal. 

 

In the weekly Japanese candlestick chart of JWN, below, we can see that prices have traded lower since early 2021. The shares are trading below the declining 40-week moving average line. A large upper shadow in August cannot be ignored as traders rejected the highs.

 

The weekly OBV line shows us a longer-term downtrend. The MACD oscillator remains in bearish territory or below the zero line. 

 

 

 

In this daily Point and Figure chart of JWN, below, we can see that the stock has been in a downtrend with an $11 price target. 

 

 

 

In this weekly Point and Figure chart of JWN, below, we can see a downside price target in the $11 area. 

 

 

 

Bottom-line strategy: The charts of JWN look weak and so do the indicators. Avoid the long side.

 

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