Thursday, October 15, 2015

KSS Kohl's Daily Chart Oversold Falling Wedge Positive Divergence

Retailer Kohl's is a hated stock. The doorman at the fancy hotel waved Keystone down this morning and said he bet the farm on the short side with KSS. The guy selling newspapers chimed in and said Kohl's is guaranteed to move lower. The blood is in the streets. KSS has collapsed from 79 to 44 during the last six months an epic crash of -44%. Price is at multi-year lows. The baby is thrown out with the bathwater. Frustrated long traders say they will never own this stock again as long as they shall live.

The chart clearly shows positive divergence and this already created the first pop off the bottom. The money flow remained weak and bleak (red line) wanting another lower low in price which occurs now. Price prints a lower low and possie d is now in place for all inidicators. The falling wedge and indicators coming off oversold levels are also bullish indications. The weekly chart is also positively diverged although you have to keep an eye on the MACD now trying to base. KSS may have to jog at the current levels for another month but the charts are very attractive for a bottom and the long beating of KSS appears to be ending.

Keystone just bot KSS opening a new long position. The door remains open for another touch of the lower standard deviation band but price should bottom in the green circle and bounce strongly due to the possie d. Lots of shorts running for their lives may create a big short-covering rally. Keystone will likely add on weakness. Kohl's should finally receive some love going forward; perhaps KSS receives a kiss. As with all knife-catches this is an extremely dangerous and speculative trade only for those willing to lose their money. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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