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Retailers Could Hit New Highs

Alan Farley

It spent nearly two years carving support at the 200-day exponential moving average (EMA) in the $30s, finally turning higher in November 2017, and has now posted a higher low at the 50-day EMA. This bullish action sets the stage for testing at major resistance between $49 and $52. Rallies failed at the bottom of that resistance zone in 2015, 2016 and January 2018, so bears are likely to force another reversal, using weakness near the round number $50 and the 2015 high at $51.25 to reload positions.