Watch These Macy’s Price Levels as Stock Slumps on Soft Sales Guidance | Global News Avenue

Macy’s Department Store (medium size) Shares are likely to remain in focus on Tuesday after the struggling department store said yesterday it expected higher holiday quarter sales. slightly lower than Its previous forecast was weighed down by underperforming stores.

In February last year, the retailer announced plans Close 150 stores in three years Improve profitability by closing underperforming stores while focusing on expanding store initiatives that generate higher sales. In one bright spot from Monday’s update, Macy’s said second-quarter comparable sales are still on track to improve sequentially.

The retailer’s shares have fallen 14% since the start of the year and 21% over the past 12 months as investors continue to look for signs that its turnaround plan is translating into higher sales growth.

Next, let’s break it down technical on Macy’s chart and points out important price levels to watch.

Descending channel remains intact

Macy’s stock price fluctuates over 13 months Descending channelthe price has marked the pattern’s upper and lower trend lines multiple times since then.

Recently, the selling intensified after the stock encountered resistance near the pattern’s upper trendline, 200-day moving average. Importantly, yesterday’s decline occurred in the top stocks volume This move since early December could trigger further short-term bearish momentum.

Let’s look at Macy’s chart and identify a few important support and resistance A level that will probably still be of concern.

Important support levels worthy of attention

If there is a sell-off from current levels, the stock price could drop to around $13 initially. This price level on the chart is found confluence Support comes from the November 2023 peak and the lower trendline of the descending channel.

If prices close below this point, the main support at $10.75 will come into play. Value investors may look for buying opportunities at this level near three prominent troughs on the chart that formed between September and November 2023.

Key resistance levels to watch

If the stock rebounds, it will be worth watching how the price reacts to the $18 level. The stock may face selling pressure in the area near the upper trendline of the descending channel, an area that is also consistent with the multiple trendlines crests and troughs The data on the chart goes back to December 2023.

A long-term improvement in Macy’s stock price could lead to a rise in price to around $20.50, a level on the chart that could be horizontal line It connects multiple peaks from December 2023 to May last year.

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As of the date of this writing, the author did not own any of the securities mentioned.