The first major pattern on the retailer’s chart is the upward sloping trending running from the mid-December lows. The bears tried to break it last week but apparently threw in the towel.
Next is the rising 50-day ( ), which M has also held.
In addition to the 50-day , prices are now crossing back above the 8- and 21-day exponential moving averages (EMAs). That could indicate the shorter-term trend is turning more positive.
Finally, the macro backdrop is potentially favorable. One thing is the obvious boost to retail from the economy reopening. Companies with lots of debt and short interest can also benefit as extreme fear unwinds.
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