Kohl’s is the kind of stock that did great doing the value / reopening trend between November and April. But now it’s stalling and may be ready for a pullback.
The first major pattern on the chart is the bearish gap on May 20. It not only planted the stock firmly below the 50-day simple moving average (SMA). It also followed strong quarterly results, which suggests investors are no longer impressed by good news.
Next is the bearish divergence on MACD, which steadily trended downward even as KSS tried to break out a month ago.
Third, the weekly chart shows a bearish outside candle that same week of the false breakout and the bearish gap. Price has made successively lower highs since:
With the market under pressure and investors losing interest in old-economy value plays, KSS may struggle to hold its big gains.
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The first major pattern on the chart is the bearish gap on May 20. It not only planted the stock firmly below the 50-day simple moving average (SMA). It also followed strong quarterly results, which suggests investors are no longer impressed by good news.
Next is the bearish divergence on MACD, which steadily trended downward even as KSS tried to break out a month ago.
Third, the weekly chart shows a bearish outside candle that same week of the false breakout and the bearish gap. Price has made successively lower highs since:
With the market under pressure and investors losing interest in old-economy value plays, KSS may struggle to hold its big gains.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.