Hot Naked Bodies or a Trip to Kmart, You Choose

Parents like to think that of their teenagers as not wise to the world, fickle or that they are irrational. But when you look at their choice in clothing it seems they make some really rational decisions. Of the four teen retailers below, one has a catalogue of naked bodies, one is all about skater garb, one looks like a scene from the OC, and the fourth like a Kmart ad. From the charts and setups below see if you can guess which is which.

Abercrombie & Fitch, ticker: $ANF

Abercrombie & Fitch has been in an uptrend since July 2010. In the beginning of April it broke higher and has continued to trend up. It looks to continue this trend. All of the Simple Moving Averages (SMA) are sloping higher and although the Relative Strength Index (RSI) is elevated it is not extreme. The Moving Average Convergence Divergence (MACD) indicator is flat though and may be hinting at some consolidation.

Aeropostale, ticker: $ARO

Aeropostale had been in long symmetrical triangle from September 2010. It fell from the triangle, retested the mid-line and then cratered. It is now trying to recover and is in a previous consolidation range between 21.67 and 23, printing a long legged doji Thursday, putting in time. It looks like it will be some time before it can recover to the mid-line of the triangle again, with all the SMA tight and now pointing lower, and resistance at 24 as well along the way.

Buckle Inc., ticker: $BKE

Buckle has been in an uptrend since August 2010. It had a consolidation from December 2010 to April before moving up again and is now working on a nearly two month bull flag. If it can get above 46.75 then it can run higher to a target on a Measured Move of 54 – 55. All of the SMA are sloping higher and the RSI is rising with an improving MACD. It looks ready to move again soon in time for school to be out.

Zumiez, ticker: $ZUMZ

Zumiez has had a series of moves flowing higher and then retracing some a before flowing higher again. It is now in a bull flag and looks stoked for the next move higher. The MACD is about to cross up and the RSI is rising. If it can get over 30 then it is ready to pop a move higher to 33 and over that some real air.

Did you guess which was which? Here are the answers:

Catalogue of Naked Bodies: Abercrombie & Fitch – Teens continually spend money here, raising the stock price, giving it the best chart. This is rational. Wouldn’t you shop at a place that shows pictures of hot naked people if your spouse or significant other let you?

Skater Garb: Zumiez – Skaters are always working out the trick they just learned to perfection before learning a new one, leading to a flow of higher. the chart keeps going up but with some set backs along the way.

Scene from the OC: Buckle – Rising into the Winter breaks and the Summer months as it becomes more important to look like you live at the beach. Leads to a stair step higher in the chart.

Kmart ad: Aeropostale – You don’t want to shop at Walmart for clothes so why would you think a teenager would.

So next time you think your teenager is irrational look at them from another perspective. Maybe you are just jealous of their ability to do follow their desire and not be forced to conform to societal norms like your sad life in a pair of khakis an blue shirt and blazer. Out.

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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