It's hard to get overly bullish on $LB, but the chart has piqued our interest. The stock has very strong support at the $16 level and $LB looks to be on the verge of breaking out. With so many bearish on retail names, $LB could outperform quite easily with so many pessimists and shorts in the stock. With 8% of the float short, we could see a nice short covering...
long down trend hit long time support / resistance line at 16 ish all the way back to 1986
Range since sep 19 and its been down 4 times , without breaking it,
high volume on buyers the last few days
Made golden cross with the 20/50 MA on the daily cart
the RSI are positive and been a uptrend since sep.
I need it to break up over the small resistance at 19 ish...
Entry level $16.40 = Target price $18.00 = Stop loss below long term support.
Highlighted on Today's Half time report on CNBC, they traders are buying call in LB going into earnings tonight.
There is particularly high open interest at the $20 level down to the $17.50
It is unusual that so many call options are traded give the stock is having such a terrible 2019...
Confluences could lead to Big Reward with Minimum risk! Aka: Value Investing
On Daily Chart Price has shown:
- Strong support from $21 - $22
- Down-Trend line was broken
- Bullish Bat completed at LOW location on chart
- RSI Oversold
1:2 Risk/Reward ratio
Chance of large long term gains if weekly bearish bat is completed around $34
Shares of LB have rallied on Thursday morning as a result of the company announcing a surprise profit in the quarter and also raising guidance for the year to come. This could result in a massive rally in the days to come as the stock has lost 40% of value in 6 months and was actually down 5% yesterday prior to the earnings report.
L Brands, Inc....
Have a solid Doji pattern forming on the hourly chart for NYSE:LB
Open interest was at a high for the options side of things. May be a nice run up.
Also ignore the poorly drawn trend lines as im still learning!