Visually Compelling TA

Big Lots has a knack for upside surprises but its stock (BIG) demonstrates resistance near 34 as shown on a six-month chart. The 34 resistance point is evidenced on a three-year chart as well and perhaps motivated many traders to take profits upon its latest earnings announcement. BIG also exhibits support near 27 - an approximate 10% further decline from its current price. If it successfully tests 27, BIG will be a particularly tempting buy. A repeated run-up to 34 would net a 25% gain. Continued good results coupled with markets warming to retail stocks could very well propel BIG beyond 34.

Comments: View Comments |  Monday September 1, 2008