WHAT THE CHARTS SAY BY MON­ICA RIZK AND RON MEISELS

The Globe and Mail (Prairie Edition) - - MARKETS -

Bullish on DSW Inc.

DSW Inc. (Fri­day’s close US$27.41) de­clined from $39.58 to $21.23 (A-B), had a re­cov­ery rally to $29.53 (C) fol­lowed by an­other de­cline to $18.51 (D). Sub­se­quently, it set­tled in a bullish tech­ni­cal base known as an in­verse headand-shoul­der for­ma­tion (dashed lines). DSW rose above the top of this pat­tern (E) to sig­nal the break­out, re­newed in­vestor in­ter­est and the start of a new up-trend (solid line).

The stock then pulled back to its 40-week mov­ing aver­age (40wMA) where it ap­pears to have found sup­port (F); only a sus­tained de­cline be­low ±$25 would be neg­a­tive.

A sus­tained rise above ±$30 would sug­gest the re­sump­tion of the up-trend.

Mon­ica Rizk is the se­nior tech­ni­cal an­a­lyst and Ron Meisels is the pres­i­dent of Phases & Cy­cles Inc. (www.phases-cy­cles.com). And he tweets at @Rons­briefs. They may hold shares in com­pa­nies pro­filed. Chart source: www.de­ci­sion­plus.com

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