Zumiez is Preparing to Zoom!

• Posted by Greg Harmon
• on August 12th, 2014

Zumiez, $ZUMZ, is a teen/tween retailer but with a great set of technicals. And it doesn’t matter how you look at it.

The chart above shows two nested Inverse Head and Shoulders Patterns. The smaller one under way carries a price objective to 32.20. The price has not moved through the neckline of the bigger one yet, but if it does that price objective is to 40.40. A tighter look, since June (maybe even May), shows a ‘W’ pattern in a channel that has been moving higher in the last leg since a visit to the 100 day SMA. It broke over the channel this week and is trying to hold there. If it is successful the target on the channel break is to 33. It has support from the momentum indicators with the RSI in the bullish zone and the MACD rising.

Continue to watch the shorter chart and it can be bought with a stop under the top of the channel for the progression higher.

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