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ROST is above a 1.618 fib ext and R2 on daily / weekly. Lots of gaps below starting at $47.32 -> $41.77. Smart money was unloading this last week and clearly being distributed. Hypothetically, if the market showed weakness, would this stock be a fire sale after a 720% run up? Yes it would. Regardless of market conditions, not much left in the tank here.
I would prefer LONG positions, as ROST is still in this upper Pitchfork parallel zone.....however, the most recent advance did not close above the spike move on August 17th. This why I wait and remain neutral.
Rost has earnings coming out in 9 days, look for it to breakout prior and run into earnings....this would offer a nice upside potential to 60s, but it could take longer to breakout. Stop would go below breakout once it breaks with a 7-8% stop and need volume to support the move
A breakout should occur with ROST as it has build a weekly cup, no handle at this point. Earnings are coming out soon so this may accelerate it but would not want to be in during earnings...in/out prior or wait till earnings are announced
Key points;
1) ROST should no longer be considered uptrending after breaking its primary trend support.
2) A new downtrending channel has emerged after the break of its primary uptrending support line.
3) Price has already rejected the upper bollinger band and has continued to validate the downtrending resistance line of the downtrending channel
4) MACD has begun...
ROST could offer a good near-term buy on Fridays' gap up on higher volume. The bar was very bullish - adding to the momentum to the upside - and easily cleared the 2013 pivot high.
For longer-term traders, however, the large gap up could easily be filled - so we would want to see some sort of pullback or retest of the 2013 high before considering this a buy...
Ross Stores - recently broke out of a downtrend channel and a retest to break back down was unsuccessful.
It seems that price is in this steep uptrend channel and checking to see that the blue region can provide strong support for final push to challenge 81.78 by then. Looking forward to a bearish divergence
Price entry: $70.36
Price-target: $60.44
Stop-loss: $74.74
Need a drop for a confirmation of the pattern. Stock has spiked on low volume, showing there isn't much upwards strength to it. Expecting the stock to use this $70.36 price level as new resistance and drop eventually to $60.44(price-target).
Price-entry: $69.33
Price-target: $60.09
Stop-loss: $74.71
Position: Short
This head and shoulders pattern has been forming since mid September. It is serving as a reversal top. The price went under the 200 SMA last month in January for the first time in more than 10 months. The 200 SMA has made a death cross with the 20 SMA. Based on the MAs the stock's future...
