Good morning traders, we hope everyone had a pleasant holiday. Black Friday signals the beginning of a period of heightened sales for retailers, which is why we’d like to turn our attention to an old retail favorite of ours:
American Apparel, Inc. APP
We’d like to revisit APP, as it has been good to us in the past. From August to October the stock ran from .82 to 1.70, for gains upwards of 107%
The company recently released third quarter figures showing positive growth in many areas, perhaps most notably, a net sales increase of “15% to $162.2 million on a 20% increase in comparable store sales in the retail business.”
With a strong holiday season, the rate of growth for APP could continue to climb, along with the price of the stock. We are revisiting this stock at a relative bottom on what looks like a ripening chart.
As you can plainly on the chart above, we have an RSI that is coming off of being oversold, as well as a MACD that is in the midst of a cross. The PPO is pinching in as well, and it would appear the histogram is ready to flip up to the bullish side, making now a fine time to take a look at APP. We will be on the lookout, because if this stock can break above the 200DMA of .97, we could begin to see drastic increases.____