Hudsons Bay Company is moving towards its major support.
Updated
TSX:HBC
It appears to me that company's stock is heading south towards its solid support level at 9.8-9.6, which was previously tested for several weeks in 2017: January, March, May and June. Such multiple tests indicate that at this time of the year, with coming seasonal sales and money from the deal with Rhone Capital, company's stock will use this support as a bouncing point to start its move up.
However, there is still a chance that excessive cash on the market from company's investors might drive the stock's price south, towards its historical level of 8.5 or even 8.1
I believe that these levels will serve as a good point to buy stock for those who plan to go long with it.
It appears to me that company's stock is heading south towards its solid support level at 9.8-9.6, which was previously tested for several weeks in 2017: January, March, May and June. Such multiple tests indicate that at this time of the year, with coming seasonal sales and money from the deal with Rhone Capital, company's stock will use this support as a bouncing point to start its move up.
However, there is still a chance that excessive cash on the market from company's investors might drive the stock's price south, towards its historical level of 8.5 or even 8.1
I believe that these levels will serve as a good point to buy stock for those who plan to go long with it.
Note
Today this stock ALMOST reached my predicted level of support, but instead it proved the old axiom that "everybody love round numbers". As a result of it, the stock was going back and forth (with equal pressure for the whole day) around its another support level at 10.00What I can say is that in my opinion it's way too risky to buy it there, as before there was yo-yo style instead of an established trend. I still think that THE ONLY WAY TO GO LONG (I am a BULL by my nature) with this stock is ONLY WHEN IT REACHES ITS SUPPORT AT 8.0 (and then bounce up) or bounce back from 9.8 with solid volume for two consecutive days as a back up. Without these factors I would not buy it as it's way too risky.
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