MAC - Bull Test

17 сент. 2019 г.

First things first, MAC has been a thorn in the side of many a shareholders. Let´s check out the current trend on paper:

Last 5 years: - 47.78%
Last Year: - 41.47%
Last 6 Months: - 22.16%
Last 3 Months: - 4.68%
Last 1 Month: +12.77%

So you will notice the trend. Major losses, then reduced bleeding, and finally a gain. Now this all took place over a time period where the entire market has had some serious gains. So it´s valuation in comparison to the market is, in my personal opinion, severely undervalued. I know I´m not the only one who feels this way, that last month of 12.77% gains is from those who feel the same way. The company is doing there part to correct the so called retail-apocalypse. I won´t go into detail of what the company is up to, but please do quick google search to see the changes they are making.

But that doesn´t really tell us the whole story. I think the chart is enough to make the case clear. I´m not calling a bottom, but just pointing out the setup. We will probably see some range trading, created by the support/resistance lines. I could easily see it touch either line two times minimum before making it´s move. So you day traders have an opportunity to play the $32 - $34 range. I don´t like this stock for range trading though. I see more moves to the positive, so suggesting sells at $34 goes directly against this long play.

I expect the upper resistance line to be broke. The high dividend stock is attracting people, since fixed income plays are basically obsolete anymore. And with more babyboomers entering retirement, making money without selling shares is important to retirees. So in short (the puns) I see MAC reversing it´s fortunes.

A breakout above the $34 resistance line validates the play, and should open the doors to the next established resistance line of $40. If the $32 support line fails, we could see another massive sell off. That is validated with a strong push through $32 with volume. I expect this to start this week, perhaps early next week, for the price to test the upper resistance. Good luck with your trades!

Disclaimer: I don´t own this stock, and do not plan on purchasing it within the next 24 hours. This is my personal opinion, and should be taking as nothing more than that. Please trade responsibly.