Dick's has mounted an impressive recovery from the early lows, but a great deal of damage has been done. The battle is raging now near heavy resistance near the April lows as dip-buyers remain active. This action will push today's final downside volume level to its heaviest since May of last year. As this breakdown plays out, sellers will likely take control and drive DKS lower in the near term.
A further drift down to the stock's 200-day moving average, which has not been tested since the December bottom, will produce a low-risk entry opportunity for patient bulls. The area of the 200-day also includes the powerful breakout point from Jan. 7, when DKS ramped over 11%. The key support zone near the 200-day runs from $51 to $50.