Tuesday, September 02, 2008

Trade Setup: KSS

I have been following KSS for quite some time in the Trade Report. Retail, and KSS specifically, caught my eye as a bottom accumulation setup in early to mid July. The volume on the bounce gave clues that the bounce could lead to a continuation move.

Since that time, we have had two good setups. The first was on the break of the 50 day moving average. The second was on the pullback of the recent breakout highs in mid August.

The two key areas I am now watching are $52 and $46-48. Stochastics are extended, so I doubt we'll see a $52 breakout. I'd like to buy a pullback to the $46-48 area. This is no longer a bottom accumulation trade. I now see it as a breakout-pullback.

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