L Brands (LB) continues its bullish move. Here’s the update. (May 27, 2016)
LB
In this Free Chart video we’re going back to where we did on the last one, L Brands ( NYSE:LB ). If you recall last time I mentioned that this had a heck of a move off of the top, 10 percent, in just a few days. That, and then we’re looking a resistance here I guess, 20-day moving average, so maybe it’s time to ditch this thing. But the weekly chart shows a different situation here. And that is that this stock got so oversold that this could, just as a technical bounce, this could go up certainly above 70.00, maybe even to 75.00, where it would essentially retest this last big low. So if we go back to the daily chart you can see what I’m talking about here. This is really a gap here and so I would expect L Brands ( NYSE:LB ) to even come back to 73.00ish, something like that, to test the bottom of this gap. It’s that oversold.
Yes, I know retail stinks and this chart has really been stinking up the joint for quite a while, but then it’s since turned around. Just think about it this way, with this is kind of big selling volume here, this is a selling climax. Everybody has dumped to the stock that wanted to dump the stock. So now you’ve got really a pretty significant majority of folks who are short-term traders that are in this stock, that are winning, that are making money, which means that resistance is not going to be that great as this moves forward. I still think this is a buy. Do I think you’re late? Yes, absolutely. But just because you’re late to a party doesn’t mean that the party doesn’t continue for a while. Hey, grab a beer, enjoy the music, don’t do anything stupid, and enjoy the party.
Free Chart