Macy's has been in a bearish downtrend since late 2015. Although the overall trend is down, the stock does cycle up and down throughout the trend. On May 19, the stock bounced off support and should slightly cycle up over the course of the next month and a half. This is the first indicator the stock should move up. With mixed earnings from retail out of the way for now, the following points will highlight why the stock should move upward.
When we take a look at other technical indicators, the relative strength index (RSI) is at 27.2540. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. Currently the RSI is overbought and due to drop. This indicator has recently exited oversold territory. The stock is due to slowly move, or move up over the next few weeks. This is the second indicator of potential upward movement.
The true strength index (TSI) is currently -35.5789. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current movement has the stock moving down.
The positive vortex indicator (VI) is at 0.7106 and the negative is at 1.2909. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. Currently both indicators are at extreme levels which typically lead to a reversal of the stock. The positive indicator should begin to move upward while the negative indicator heads down. This is the third indicator the stock should begin moving up.
The stochastic oscillator K value is 11.4677 and D value is 7.5284. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The stochastic is oversold and the K has finally moved above the D. This is the fourth indication of pending near-term upward movement.
Considering the RSI, TSI, VI and stochastic levels, the overall direction favors a move to the upside. Based on historical movement compared to current levels and the current position, the stock could gain at least 5% over the next 31 trading days if not sooner.
When we take a look at other technical indicators, the relative strength index (RSI) is at 27.2540. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. Currently the RSI is overbought and due to drop. This indicator has recently exited oversold territory. The stock is due to slowly move, or move up over the next few weeks. This is the second indicator of potential upward movement.
The true strength index (TSI) is currently -35.5789. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current movement has the stock moving down.
The positive vortex indicator (VI) is at 0.7106 and the negative is at 1.2909. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. Currently both indicators are at extreme levels which typically lead to a reversal of the stock. The positive indicator should begin to move upward while the negative indicator heads down. This is the third indicator the stock should begin moving up.
The stochastic oscillator K value is 11.4677 and D value is 7.5284. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The stochastic is oversold and the K has finally moved above the D. This is the fourth indication of pending near-term upward movement.
Considering the RSI, TSI, VI and stochastic levels, the overall direction favors a move to the upside. Based on historical movement compared to current levels and the current position, the stock could gain at least 5% over the next 31 trading days if not sooner.
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!