Men’s Wearhouse, I Like the Way It Looks

• Posted by Greg Harmon
• on July 8th, 2013

Men’s Wearhouse, $MW, had its 4th of July fireworks early, firing their Executive Chairman George Zimmer on June 19th. But after just a few days of selling over uncertainty, the stock has been rising over the last two weeks. And I have to tell you, I like the way it looks. Take a look at the chart below. The stock is in a bearish Deep Crab pattern, but with a Potential Reversal Zone (PRZ) all the way up at 48.75. It also is breaking a bull flag consolidation at 38.80 after a move higher from

35. This gives a Measured Move to 42.60. And the Relative Strength Index (RSI) is bullish with a Moving Average Convergence Divergence indicator (MACD) that is rising. These both support further price increases. It may take a couple of months to get there, but that is okay as it pays a dividend of 1.9% and goes ex- in mid September. So with or without George, the stock looks higher. Use a price of 39 as a trigger. it closed over it today.

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