$BOOT is bucking the trend – August 15, 2023
This is Scott with your Chart of the Day. I want to take a look at Boot Barn ( NYSE: BOOT ).
Now, this is an idea that I lifted from our Active Trading Room at StockMarketMentor.com. I think this is a pretty interesting chart considering we saw SPY ( NYSEARCA: SPY ) breakdown today and close under that 50-day moving average. So while most of the market was red, Boot Barn ( NYSE: BOOT ) showed some really interesting relative strength today.
You can see how this stock gapped up and has since just kind of drifted back down to that 21-day exponential period moving average, that’s the gray line on the chart. We got a gap fill to the downside, and today, a bullish engulfing candlestick coming on higher than average volume, So we have this potential upside reversal, or trend change, in motion.
Now, we can see what this stock needs to do, it needs to get out of this consultative channel. You can see how the stock is just kind of channeling down, not really doing much of anything and we want to see it break out. And so what I would do, in this situation, is probably take a look at this tomorrow.
If it does show us some relative strength to the upside and a move back above that 8-day exponential period moving average. I think you could probably put a stop loss right under that 91.25 level. Take a little stock and if you get rewarded layer into a potential starter position if this does fix itself and get back above all the major moving averages here.
So this is definitely one to watch and I appreciate our members at Stock Market Mentor for bringing so many great ideas to the table each and every day.
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