3. Now, let's look at Conn's. It operates as a specialty retailer of durable consumer goods and related services in Texas, Arizona, Louisiana, Oklahoma and New Mexico.
CONN traded lower on Wednesday, closing down 1.7% at $47.48 per share.
- Wednesday's range: $47.11 - $48.90
- 52-week range: $31.17 - $80.34
- Wednesday's volume: 759,476
- 3 month average volume: 1,248,210
CONN was a rounded-bottom breakout on April 15, then traded up and back, testing the patten, and was again a rounded-bottom breakout on May 22. I didn't want to recommend this trade before because earnings were approaching, and I never suggest holding over earnings. Now that positive earnings have been reported and there is a slight pullback, it's a perfect time for an entry.
Shares are still trying to fill the gap down that occurred February 20, a big gap down, so there was a lot of resistance to the upside. Now the gap down is almost closed, and the resistance is somewhat less relevant. I'd set my stop at the 20-day simple moving average at $43.94. Like with all rounded bottom breakouts, target the 200-day simple moving average first, which is almost 15% to the upside from yesterday's close. Not to say that the bullish move will stop at the 200, but I'd take some profits there. Stay long until you see a confirmed sell signal, or a close below the t-line.Good luck traders! Learn how to trade candlesticks here, this is my trading home. Follow @aarongallaher At the time of publication, the author held no positions in any of the stocks mentioned. >>Read More: Will the eBay Password Breach Finally Scare Off Investors? >>Read More: Two New Summer Toys All Urban Millennials Should Crave This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.