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1.3.13 Thursday
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Kohl’s Really Likes Bullish Divergence
Bullish divergence is where the Stock makes lower lows while the oscillators make higher lows. Usually turns it into a new bullish trend.
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October-November 2008
July-August 2010
July-September 2011
January-June 2012
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December 2012-Today
Fear: “It’s not going to play out this time. How can it ALWAYS play out like this unless its a scam?!?!?!”
Greed: “OMG!! I am going all in!”
Me: “Just like any other trades, I will get with some bullish positions and see if it plays out.”
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1.4.13 Friday 9:35AM CT
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Bullish Trade Setup
(Daily Chart | 10EMA-Blue, 20EMA-Purple)
Aggressive Play: Get in bullish above 10EMA (blue)
Conservative Play: Get in bullish above 20EMA (purple)
Safe Play: Get in bullish above $45.20 (recent resistance)
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1.15.13 Tuesday 8:59AM CT
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Entered Long Little Earlier @ $42.37
(10EMA-Blue | 20EMA-Purple)
Currently trading above 10EMA and 20EMA coming up soon which could act as resistance. I am hoping that we can close above 20EMA today. Next resistance at $45 if we can clear 20EMA. Volume most definitely needs to SPIKE today if Bulls are going to show us some backbone to really push through this slum.
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1.17.13 Thursday 10:40AM CT
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Trading Above 20EMA, Need Volume Spike
(20EMA-Purple)
Everything looks good as of now as we are currently trading above 20EMA and it was crucial that we did. It’s on its way to fill the gap (yellow shaded) from 12/20/12 and next hard resistance would be at $45.27 (12/19/12 high). Volume is not supporting the move so far however the day is still young so I would really like to see some volume spike EOD (if not we could see some retracement next few days).
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1.24.13 Thursday
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Blew Up with Volume
Blew up today with nice volume spike however there is always obstacles in trading. So the current obstacle is that horizontal resistance is now coinciding with 50EMA (pink) (see arrows). When the price level confirms twice as such, it adds potency to its sentiment. Which means that $45 level is going to be critical level of resistance. Tomorrow and next week, if it wants go higher, it must close above that level. I am still holding full bullish positions.
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1.25.13 Friday
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Not Bad, No Retracement
So we did manage to close above 50EMA (barely) which gives some leverage to Bulls, however I am little concerned about that horizontal resistance of $45.20 (could act as resistance next week). Volume is not bad compare to other days in the past especially today being a ‘rest day’ after a huge break out like yesterday. Still bullish and holding full positions.
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1.29.13 Tuesday
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Added More Calls @ $45.29
Looks like we gonna close above 50EMA and recent support. Added more as soon as it cleared 50EMA earlier today.
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1.31.13 Thursday
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Still Running Steadily…
$47.20 resistance approaching soon
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2.4.13 Monday
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Trouble…
I am still holding my Calls and if that 10EMA does not hold, I might get stopped out tomorrow.
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2.5.13 Tuesday
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Nice Save / Added More Calls @ $45.25
10EMA and 50EMA is teaming up with the Bulls and trying to make things right once again.
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2.6.13 Wednesday
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Bulls Are Back
Just need to close above $46.40 (recent resistance). Volume isn’t the greatest but higher than last 1-2 weeks so it’s ok.
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2.7.13 Thursday
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Bears with Automatic Weapons / Closed Out @ $45.15
4 thoughts on “$KSS Why It Might Be The Best Time To Buy (Ready to Run) Update 2/7”
Hi kay – out of curiosity, how do you find these divergences? do you manually scour the graphs and search for them or do you have some sort of tool that points them out to you?
@vijalp9 Thats a good question because many have asked me that. Well I don’t use any program or services to find these patterns. All pattern I find and I write about are organic meaning I scan through my watch list and i find them. Thing about divergences before looking at the Oscillators you can kind of tell if its diverging or not just by looking at the candle formations and the chart sentiment (it takes years for your eye to see it) and then I double check by looking at the oscillators for a confirmation but I also make 2nd confirmation by going into the past prices to make sure that the certain stock (like $KSS) is not immune to these divergences so I can play it. Thnx for visiting.
Hi, Jan 25th, Couple firms posting a short side to KSS, tried to contact one, but they wouldn’t say. Good side is KSS did finish above the SMA(50), bad side is its maxing out on the stochastic, close to over bought on most other oscillators. Any one have thoughts that Kohl’s might give us another shoulder here to the inverse HnS pattern?
@jaywillis possible of inverse h&s yes. 50EMA could still work as resistance next week.