Thursday, January 3, 2013

KSS - Bullish Divergence

Kohl's has had sizeable pullback after mid-50s high in mid-November. It has come back to a strong support level and showed signs of a bounce today on decent volume. RSI and Stochastics are indicating Bullish divergence.   May be worth a pick right here. I might play this with April or June $45 calls or 45/50 Bull Spread.

Divergence is  a very strong leading indicator. You can read more about it here :-  Bullish/Bearish Divergences

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