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Shares of apparel-stores operator DSW Inc. (DSW) - Get Designer Brands Inc. Class A Report are exploding higher Tuesday, after the company reported its first positive same-store sales (comps) since 2015.

The company reported earnings of 38 cents per share, which beat Wall Street estimates of 29 cents per share; revenue came in at $680.40 million, which also topped estimates of $666.07 million. DSW's same-store sales came in at 0.6%, which beat Wall Street consensus for a decline of 2%. The company also raised earnings guidance with a target of $1.45 to $1.55 a share, compared to estimates of $1.44 a share.

CEO Roger Rawlins was upbeat on the conference call, citing a dramatic improvement in the women's category, which turned positive during the quarter, and a successful expansion into kids and the athletic segment, which resulted in market share gains and winning new customers.

Rawlins also mentioned that over the next year, the company will start a number of new initiatives with the goal of inspiring brand loyalty and making an emotional connection with its customers.

At last check, DSW was ripping sharply higher by 19.6% to $18.76 a share on heavy volume. Volume so far in Tuesday's trading session has already surpassed 9.8 million shares, which is dramatically above its three-month average action of 1.72 million shares.

If you take a look at the chart for DSW, you'll notice that this stock is gaping up significantly above both its 50-day moving average of $17.38 a share and its 20-day moving average of $17.57 a share with monster volume. Despite this strong action, shares of DSW are far from out of the bearish trend they have been stuck in for the last three years.

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That said, a significant technical development could be under way for DSW if this stock can manage to break out above a key downtrend line that dates back to the start of 2015 with strong volume. A move and especially a close above that massive trendline that is major resistance could set up this stock for much more upside in the coming weeks and months.

Traders should now look for long-biased trades in DSW if this stock can manage to clear and close above some key near-term resistance levels at $19.40 to its 200-day moving average of $19.78 a share, and then above more key resistance levels at $21.47 to $21.80 a share with strong volume.

A high-volume move or close above those levels will then push this stock back above that key downtrend line, and set up shares of DSW for a move toward another key downtrend line that dates back to 2013. Traders should stop out or avoid this idea if DSW moves back below its 50-day moving average of $17.38 with unusual volume.

The bottom line, shares of DSW are on the move with heavy volume after the company reported an upbeat quarter that could be signaling a fundamental turnaround is in play. If this stock can manage to close above a number of near-term resistance levels mentioned above, it will set up to trade toward $25 to $28 a share in the near future. That $28 level sits at another key downtrend line, so the bears could at least see pressure to that area in the near future.

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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.