Get Your Shoes On

• Posted by Greg Harmon
• on October 30th, 2013

DSW, $DSW, had a long run higher from the may consolidation at 64 to the late August high at 88. Since then it pulled back and consolidated in a channel for a month before a final step down to the 100 day Simpler Moving Average (SMA) and a 38.2% retracement of the run higher. Now back approaching that high and consolidating in a bull flag at 86.80, it has a Measured Move higher to 93.10. The Relative Strength Index (RSI) is bullish and rising and the MACD is moving higher,

both supporting a move higher. All it needs is a catalyst. It does not report earnings until November 18th though. But there still may be a catalyst in the near term. In fact in the morning. Thursday morning before the open Steven Madden, $SHOO, reports earnings. Its chart is set up for a potential move as well. The gap up it created in early October has consolidated and the Bollinger bands are what my Boston friends describe as ‘wicked tight’. A strong move higher in Steven Madden will likely lead to the flag breaking higher for DSW as well. Get up early and put your shoes on.

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