Macy’s, Inc. is a retail organization that operates stores, Websites, and mobile applications. The company sells a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods.
Macy’s has broken all-time lows and reached the lowest low in history a month ago. The stock is cheap, a real bargain at around $6 per share. The quarterly sales update was not impressive. There is a lot of margin for profit on the way up to a monthly imbalance, around $15 per share. Swing traders have an opportunity to buy shares of Macy’s and ride them until that price level. The rally could continue until the next major imbalance, as seen in Macy’s monthly timeframe attached below.
The coronavirus has also affected Macy’s, forcing stores to close and sales to slow. However, that’s what we expect on a stock in a clear downtrend creating supply levels and eliminating demand. Macy’s even suspended dividends, it’s a tough pill to swallow, but that’s what’s happening at Macy’s
The supply and demand technical analysis for Macy’s tells us that no more selling is possible until the price rallies much higher. Swing trading buy opportunities are possible on the way up. Macy’s drew down $1.5 billion from its credit facility apart from suspending dividends to get long-term security help.
Macy’s still isn’t out of the trouble zone, not by a long shot. Buy opportunities are being created, but selling Macy’s is not an option.
This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis, no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.
Trading supply and demand imbalances is ideal for beginners and those with full or half-time jobs. You won’t need to stay in front of the computer all day long trying to move price action with your mind.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why do you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements on Macy’s.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a Macy’s CFD (contracts for difference) if you are in a country where it’s allowed.
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