Macy’s, Inc. (NYSE:M) is expected to provide a look at discounting trends

Macy’s, Inc. (NYSE:M) is expected to provide a look at discounting trends

Macy’s, Inc. (NYSE:M) is expected to provide a look at discounting trends

Macy’s M, -4.38% is expected to provide an early look at how discounting trends and a wetter spring pressured department-store earnings on Wednesday, and will be followed on Thursday by JC Penney Co. Inc. JCP, -13.54%  , which is in danger of having its stock delisted for trading at too low a price.

Industry dynamics have retailers looking for ways to rein in costs, as shown by the latest corporate disclosures. Walgreens Boots Alliance Inc. WBA, -0.43%  plans to close roughly 200 stores, according to a recent filing, while CVS Health Corp.CVS, +0.42%  is opening stores at a slower rate. Look for Walmart and Macy’s to discuss cost-control efforts as well.

The coming week won’t be as crowded with reports as the previous three — 90% of S&P 500 index companies have already reported, as have 26 of the 30 Dow Jones Industrial Average components. Two Dow components — Walmart and Cisco Systems Inc. — plan to report this week, as well as 11 S&P 500 companies and a host of Chinese companies and marijuana sellers that don’t receive much love from the major indexes.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 22.12.

The projected upper bound is: 20.77.

The projected lower bound is: 18.04.

The projected closing price is: 19.40.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 19.4267. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 29.46. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 48 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -129.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 10 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.

Rex Takasugi – TD Profile

MACYS INC closed down -0.890 at 19.430. Volume was 4% above average (neutral) and Bollinger Bands were 63% wider than normal.

Open     High      Low     Close     Volume___
20.280 20.340 19.360 19.430 1,997,474
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 21.21 21.58 25.74
Volatility: 46 41 49
Volume: 2,197,248 1,956,565 1,966,016

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

MACYS INC is currently 24.5% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of M.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on M.N and have had this outlook for the last 5 periods. Our momentum oscillator is currently indicating that M.N is currently in an oversold condition.

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