Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and DDS DISCOUNTS brand names in the United States. It primarily offers apparel, accessories, footwear, and home fashions.
Take a look at the 1-year chart of Ross (NASDAQ: ROST) below with the added notations:
ROST is currently trading right where it was back in mid-August of 2016. Since that time, the stock has created a key price level at $65 (blue) that has provided both support and resistance for ROST. Now that the stock is pulling back to that level again, traders should expect a bounce.
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The Tale of the Tape: ROST has a key level at $65. Traders could enter a long position on a pullback to $65, with a stop placed under that level. Traders that are bearish on the stock could enter a short position on a break below that level instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach