Catching Kohl's
Kohl's (KSS) shares took a major pounding last week. Following Thursday's disappointing same-store sales numbers, KSS collapsed 12% on its heaviest downside trade in 10 years. This major breakdown extended the rather weak action that had plagued the stock after the election. At last week's close, the stock had dropped nearly 20% from the Nov. 7 settle. As the powerful downside momentum begins to ease this week, KSS will soon reach a very low-risk buy zone.
Kohl's (KSS) Source: TradeStation View Chart » View in New Window »In early November, KSS reached fresh 52-week highs. Less than four weeks later the stock is approaching major support near its 52-week lows. This area, just below $43, is also the home of the 2011 lows. KSS dipped below this level in September of last year putting in multi-lows in the process. This summer the stock revisited the sub-$43 area while building a solid short-term base. When July began, KSS was set up well for a healthy rebound. Beyond a rebound, KSS moved past heavy resistance near the February/April highs on its way to new 2012 highs. In one day, a huge part of this bull run was wiped out. I expect this bearish action to continue in the near term....120 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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