Jos. A. Bank's Chart Remains Mixed Picture

• Paul Whitfield
• On 6:17 pm EST, Monday November 9, 2009

Men's suit retailer Jos. A. Bank Clothiers (NasdaqGS:JOSB - News) is working on a base.

The stock broke out of a cup-with-handle pattern on Aug. 25, but volume was routine. Thus the 40.14 buy point wasn't actionable. Without a sharp increase in volume, there was no evidence that funds were behind the move.

The big trade kicked in six sessions later. By that time, the stock was extended. It rose about 9% from the big-volume day, then fell.

Even though volume was weak as Jos. A. Bank crossed the buy point, the stock posted a 22% gain from there to its September high. After a 20% gain from a buy point, a stock's next correction can be considered a new base.

Jos. A. Bank is now rising up from a second low it marked a week ago. The pattern could be evolving into a double-bottom base. The potential buy point 19 47.66.

But this stock really needs time to build some accumulation in the base. Volume has been below average in each week of the pattern.

Without accumulation, investors face another uncertain situation.

If the chart appears uncertain, the best thing to do is revisit the fundamentals. There you will find two steps up in EPS growth in recent quarters, but two steps down in revenue growth.

Buzz up!