Going long CATO here.The support we are at was created over 20 years ago.
Were getting weekly bull div on rsi and macd.
This is a small position, 2% of portfolio.
earnings is going to be a wild card here.
CATO trade ideas
Breakout from pivotCATO has broken above the pivot and so far is holding nicely. The risk of 5% is a bit too much for me but it is holding nicely.
Cato - targeting .328 and 0.5 fib on the DailyWe see bullish divergence on the RSI on a daily time frame.
The stock is facing resistance at 0.238 fibo level and if it breaks through we target 11.8 as the first Target (0.382 fib) and 12.9 as the second target (.5 fibo).
The latter also nicely aligns with a test of the 100 day moving average.
What do you guys think?
CATO CORP a long on breakoutA earnings surprise in September has lead to a nice rally which is now in a the process of forming a pennant\flag formation.
RSI is in a bullish trajectory.
MA 7&12 acting as support.
Possible 10% upside on break above resistance.
Stock is very fairly valued considering the yield and P/E ratio.
Average analysts price target $23
Average analysts recommendation Hold
P/E ratio 12.62
Yield 7.61%
Short interest
The Cato Corp. engages in the retail of women's fashions and accessories. It operates through Retail and Credit segments. The Retail segment offers fashion specialty stores. The Credit segment involves in credit card services. The company was founded in 1946 and is headquartered in Charlotte, NC.
To Monitor: Breaking the channelIf/when the price exits the area, may go to close the gap. We are monitoring it.
