Sowing During the Harvest at Tractor Supply

• Posted by Greg Harmon
• on September 4th, 2013

Tractor Supply ($TSCO) offers 130 products when you look at the Harvesting section on their website. That is a lot of products. And with the harvest about to get under way it stands that this is a good time to look at the stock. Well the chart below shows that far from being a good time to harvest gains, it just might be time to sow the seeds of a new trade. Take a look.

The stock has bee consolidating in a broadening triangle since July 15th. It has made a couple of lower lows and that will surely have many looking for a downside break on a failure at the current top at 125. But technical traders know that every touch at a resistance or support line is a potential for a new trade. In this case the stock has the support of the rising 50 day Simple Moving Average (SMA) as it butts up against resistance. But it also has a Relative Strength Index (RSI) that is trending higher with a Moving Average Convergence Divergence indicator (MACD) that is positive, crossed over the signal line and rising. These support the upside. And if it does break then the Measured Move higher takes it to 132.50 as a first target. Look for a move over 125 as an entry.

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