URBN - Urban Outfitters
I'm going to start a series of trade of the week ideas. I'll post this on Sunday evenings or Monday evenings. This week I'm going to get started early and take a look at $URBN Urban Outfitters.
With the market failing last week, URBN really saw one day of selling. It's not caring what the market it doing. Sure it had an upgrade by Morgan Stanley and retailers are looking to post comparable growth from last quarter so $URBN is holding it's own currently. Enough with the news, what I care about is what does the charts tell us?
I'm not looking at this for a short term scalp but rather on a larger time frame using the daily and weekly charts. We can see on the daily time frame we upside targets around $38 and retraced half way back to $34.75.
To get long in this position I am looking for two things to happen. 1) Take out the prior days high ($37.48) or 2) take out the last swings high ($37.99). Ideally somewhere in between is the 78.6 retracement around $37.50. If we can clear and hold this level. I can see upside targets of $39.
You're telling me a $1.50 is it? Not at all. Ideally, I'd like to see this continue to make higher highs and higher lows and the upside target I'm shooting for long term is between $46 - $47.50. Here is the weekly chart.
I'm setting this up with April and May calls if the levels I mentioned above happens. Signal will be posted in the chat room when the trade is taken.
I'll be out on vacation this week so trading will be light. I have alerts set-up on any new potential trades and will manage my current positions while my toes are in the sand! Everyone enjoy their week and happy trading!