Scott thinks this level is pretty important on $BJ – August 3, 2022
BJ
This is Scott with your Chart of the Day. I want to show you a level that I think is pretty key on BJ’s Wholesale Club Holdings ( NYSE: BJ ). This is evidently in the discount store sector, and I think that this level at around 71.33 is pretty important.
If I zoom out you can see why because back here in November BJ ( NYSE: BJ ) had a big move up on higher than average volume and then kind of fell back into the moving averages. Ever since this day here, it has been unable to get back above that clear 71.30 zone. It tried, tried, tried, tried, tried over and over, but it can’t do it.
I think it is worth having an alert on BJ ( NYSE: BJ ) at around 71.30, and take a look at it. Now, you could potentially start a small started position right here as it hangs around the 8 and the 21-day exponential period moving averages. In that case, you would probably want to have a stop right around that 66.00 level.
So you are small but you have a wide stop and you are sitting through the gyration, sitting through the consolidation, and then adding with a move through and a close above this clear level, coming on higher than average volume. I think it makes sense to have an alert right around that level.
Keep in mind that they do have earnings coming up on the 18th. So if you are starting a small position and it doesn’t break out I would probably want to end up selling that position because I don’t know about you but I don’t like to hold anything into earnings unless I have like a good 20 percent cushion or anything like that.
So that would be my thought here on BJ ( NYSE: BJ ). I think it is worth keeping an eye on as it is still in a decent uptrend and near some key moving averages.
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