I am long a small, starter position of retail play CHS inside the 12631 Trading Service. The reason why I am not adding to it yet, in part, is due to the major resistance trendline you can see on the monthly chart below. While I am respecting that likely resistance for now, I am also mindful that each successive pullback over the past few years has been more and more benign. I believe pressure is building on that resistance for a major breakout through $16.50. I am being patient with the stock for now, but just as with my analysis of GPS last evening, I believe the next few quarters should bode well for these select retail apparel plays.
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