Within sectors, such as retail, you have both viable long and short setups.
Many of the small retail stocks do not report earnings until late-Augsut. So, I am looking at them as trading ideas next week. Below, I present a short and then a long trading idea.
CHS is women’s retailer, and is a short idea on further weakness below the bear pennant I have highlighted for you on the daily chart, first below. You are talking about a stock with declining major moving averages above. Thus, we have an established downtrend, which makes the bear consolidation all the more pronounced.
GES is diversified retailer for men and women, and is a long idea on further strength. On the daily chart, second below, you can see a steady uptrend, with price above all rising major moving averages (properly aligned, too). There is no heavy sell volume of which to speak.
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