The USD 41.8 support, currently tested, should allow Kohl's Corporation to rally again.

From a fundamental viewpoint, Kohl's Corporation is undervalued in terms of enterprise value. Based on the current price, its market capitalization, minus its net debt, represents 0.7 times its revenues. This valuation is just 10.3 and 9.44 times the two next years earnings.

The security follows a downward trend in the short term, under the USD 43.5 resistance area. However, the selling pressure could run out of steam soon. Indeed, whereas the stock shows an oversold condition, the USD 41.8 support area has currently stopped the bearish trend in the short term.

So as to make the most of a potential technical rebound of Kohl's Corporation, it seems opportune to take a long position at the current price. A confirmation of this pattern would enable the security to reach the 50-day moving average at USD 46. Investors should not insist under USD 41.8 and place a stop loss order under this threshold.