After Dropping Over 39% Macy's Stock May Be Picking Up Steam Once Again: Technical Analysis

Macy’s Inc. M shares are trading higher Tuesday, although there looks to be no company specific news to explain the jump in price. The stock was trending on social media sites throughout the day. Macy's continues to hold the higher low trendline as support after breaking out of what traders call an ascending triangle pattern.

Macy’s was down 5.98% at $252.10 at time of publication.

Macy’s Daily Chart Analysis

• Shares were able to break out of what traders call an ascending triangle pattern and have continued to trend upward. The $20 level held as resistance in the past but may become an area of support as the price is above the level.
• The stock trades below the 50-day moving average (green) but above the 200-day moving average (blue). This indicates the stock is likely in a consolidation period, and the 50-day moving average may act as resistance while the 200-day moving average may hold as support.
• The Relative Strength Index (RSI) was falling throughout the month of November, but has been climbing once again in December and sits at 48. This shows that the buying and selling pressure is relatively equal, with slightly more sellers. Buyers have been pushing into the stock more recently, reflected by the price increase throughout December.

What’s Next For Macy’s?

Macy’s saw a large breakout after crossing above pattern resistance and pushing parabolically higher. Then the stock took a breather and experienced an over 39% decline from Nov. 18 to Dec. 20. Macy's is now starting to move higher once again.

Bulls are looking to see the higher low trendline hold as an area of support on the chart as the stock continues to make higher lows.

Bears are looking to see the stock fall below the higher low trendline and then below the $20 level.

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