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Revolve will establish new channelRevolve has had a rocky time since its IPO, with lots of volatility and several breaks below critical trend lines. However, this company is profitable, undervalued, and highly rated, and in my opinion it's still a great value. With Revolve having breached the bottom of its parallel channel today, it's likely to establish a new channel. I've drawn a couple possible channels and some trend lines, and I've marked the breakout zones with the play for each zone. I've also marked support and resistance from all-time highs, and you can also see the high-volume support node at 35.27. Currently I'm playing this long on the basis of that volume support node.
NYSE:RVLVLong
by ChristopherCarrollSmith
3
Internet retail meeting resistance near previous highsAs my followers know, I've been following Stitch Fix and Revolve as both stocks take a dive today. The plummet comes, surprisingly, just a day after strong retail sales data for June. It was the strongest quarterly retail sales growth since they started recording this data in 1992! However, that's mostly because Q1 was so weak that Q2 looks strong by comparison. Year-over-year, the numbers look much weaker. Most of the strength, however, comes in the retail and consumer staples sectors, while the weakness is mostly in cars, building supplies, and furniture. (Incidentally, that means grocers and retailers are likely to beat estimates on next earnings, while hardware and auto companies are likely to miss them.) Overall, this should be good news for retailers like Revolve and Stitch Fix. However, not only Stitch Fix and Revolve, but also the whole Internet retail sector is falling today against the S&P 500. That's partly because Internet retail is approaching highs from last May and the previous June-September, and it's partly because Internet retail got overbought against the S&P 500 on its hourly chart. However, we're still above our moving averages and our MACD signal line. The sector will oscillate downward in the short term, especially amidst overall market weakness, but it should continue to outperform in the medium term. With strong retail data and excellent profitability, I remain confident in companies like Revolve and Stitch Fix.
ILong
by ChristopherCarrollSmith
Stitch Fix poised for a turnaroundStitch Fix is at support from a high-volume node on the volume profile and from its 50-day moving average. It also has some RSI support around 38. The stock just got some big analyst upgrades from Zacks and Goldman, which could serve as upside catalysts. The Internet retail sector is currently outperforming the S&P 500. S&P Capital IQ rates Stitch Fix as undervalued, with stable growth potential. Overall, both fundamentals and market sentiment are looking up for the stock. However, Stitch Fix has some downward momentum, so it could fall through the 50-day MA before rebounding from 200-day MA support near 26. I don't expect it to fall any further than that, but in the worst-case scenario we could get as low as the high-volume node at 23.
NASDAQ:SFIXLong
by ChristopherCarrollSmith
Hibbet Sports on solid supportHibbett Sports took a pretty decisive jump after touching its next support level the other day. Hibbett's had a bunch of recent analyst upgrades, and on Friday a single trader bought a huge number of July calls (79K shares) with a price target of 18.65 or better. Having said all that, Recognia's Elliott Wave analysis of Hibbett suggests it will keep heading downward to 14.92. I don't put a ton of stock in Elliott Wave analysis, but it does seem to have some predictive power. I may follow the option buyer's trade if I can get a price close to 17.70.
HLong
by ChristopherCarrollSmith
1
Tailored Brands channel break, double bottom, short squeezeTailored Brands has been in a *steep* decline since its high of 35.86 in May 2018. It fell all the way to just above 5.00 this month. Wow. However, I see signs of reversal. Firstly, we've broken out of the downward parallel channel that the stock inhabited for a year. Secondly, We've formed what looks like a double bottom pattern. Thirdly, the stock's fundamentals are starting to look better. Its 3.82 P/E is attractive, and its forward P/E of 3.07 is even better. In the last 3 months, insiders purchased a net 143,015 shares-- much more than the net 36,253 shares they purchased in the 9 months previous. TLRD beat estimates on its last earnings report, and it said encouraging things on its last conference call about reducing China exposure. Plus, there's news this weekend of renewed trade talks between the US and China. As a bonus, short interest is 35.47% of float, which makes this stock a good candidate for a short squeeze. If the year-long trend changes and the price begins to rise, it could do so very quickly.
TLong
by ChristopherCarrollSmith
1
Long American Eagle (AEO) nice Risk Reward Option or equity playAmerican Eagle oversold, and the accelaration in the stock is not justified (in my opinion). They are on the pace of gaining market share from VS and continue to grow. I believe pace of sell off was just too steep. Based on recent high frequency economic data and Jerome Powell's comments, consumer spending is solid and US retail sales are good, I believe close to the next earnings report I am expecting a pick up in the stock price.There are signs of strong support at 16.60 and signs of weekly consolidation at 16.82. I believe price will be pushed up towards 17.15, 17.40, and 17.50 and breakout from there towards mid $18 levels.
NYSE:AEOLong
by tc7787
RVLV trendline supportRevolve has formed am upward parallel channel since its IPO. It's currently in the bottom half of the channel, with support from a trendline that's parallel to its channel. So far we're looking good for a reversal upward tomorrow based on this trendline support. Set tight stops, however, in case we breach support and head downward to channel bottom. Then look to re-enter in the 31-32 range. As always, this is just an idea as to how the market will move, not investment advice.
NYSE:RVLVLong
by ChristopherCarrollSmith
JUMEI INTERNATIONAL HOLDING LTD. - NYSE: $JMEI BasingAfter recapturing its 200 DMA back in January, JUMEI INTERNATIONAL HOLDING LTD - NYSE:JMEI has been trading in a side-ways grind and finds itself basing and working on its right-side as is evidenced in the Daily chart above. In addition, JMEI now finds itself trading above all of its important moving averages 20/50/200 DMA's, which portrays a healthy technical posture. While the stock has further work to do, both investors/traders may want to continue to monitor the action closely in the days/weeks ahead for if JMEI should go topside of the $2.80 level, such development would likely ignite its next meaningful advance into greener pastures. Thus, investors/traders may want to put JMEI front-and-center on their radars for additional clues/evidence that things are about to perk-up.
J
by InsiderFinancial