This looks like a marked change of behavior for $CHS and could be a bullish flag forming prior to more upside on the way. You can see recent moves into this price zone led to intense sell-downs. Worth keeping an eye on at least.
This is a longer term setup off of the weekly chart.
Chico's (CHS) has stochastic divergence on both the weekly and daily chart.
It has strong resistance at 9.75 that it needs to break through in order to make the bigger move.
Target: 10.74 - 13.07
CHS seems forming a H&S formation in weekly frame and in the daily frame it is breaking down all the MA lines & strong support labels. We think it will decile from here down to $9.50 area.
* Trade Criteria *
Date first found- April 4, 2017
Pattern/Why- H&S formation
Entry Target Criteria- break of $12.96 or bounce to $13.34
Exit Target Criteria- Target 1-...
If CHS gaps below 16.59 consider using the Retest Gap strategy but watch out for 200sma on daily. If it gaps above 17.39 consider using the Gap N Go strategy. To get a free and complete trading education go to www.RealLifeTrading.com
1) ADX is giving a very strong bearish signal here that a downtrend is emerging
2) Price has consistently rejected the 20 day simple moving average
3) Price is incredibly weak on a very strong market day
4) RSI is not oversold yet so timing for a short is reasonable
5) MACD has not crossed down yet so timing for a short is reasonable
6) There is no...