In the past few sessions, Chico's FAS shares have suffered from a sharp fall and is now coming back on a significant level support.
According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility.
After several weeks of horizontal fluctuations within the mid-term range USD 16.8 / USD 19.64, the stock is coming back close to the lower limit of the range.
Moving averages are flat and technical indicators illustrate the oversold situation. The USD 16.8 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the USD 17.87 mid-term resistance and then the pivot point at USD 18.68.
Therefore, the proximity of the USD 16.8 support is an opportunity to take a long position in Chico's FAS. The first goal is a return in the USD 17.87 resistance area, that is a potential of 4.7%. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the support currently tested.
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Operates women's clothing and accessory retail storesChico's FAS, Inc. operates women's clothing and accessory retail stores.It is a specialty retailer of private branded, sophisticated, casual-to-dressy clothing, intimates, complementary accessories, and other non-clothing gift items under the...