What About Macy’s?
- Posted by Greg Harmon
- on June 4th, 2014
Macy’s, $M, has long been a favorite retail stock among traders and investors and comes with a decent dividend of over 2%. But is also is a stock that can be used to visualize the dichotomy of views on the market between bullish and ready to move higher, and gone to far and in need of a pullback. The first chart below paints the bullish case. After a run higher from February the stock pulled back through April and into May before moving back higher. The price action has traced out a Cup and Handle pattern and with today’s candle may be ready to break higher. This would trigger a target of 65-66. Nearly a 10% move higher from the current level.
But the second chart shows that the Cup above, can also be viewed as a near perfect bearish Gartley harmonic. A move lower here, that could be interpreted as a continuation of the Handle on the Cup and Handle pattern, would actually trigger the reversal on the Gartley and target a move lower to at least 58.80 and 57.28 should it go beyond. Only a 5% pullback but a pullback none the less. Which way do you see it?
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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