Sears Holdings Corporation (Nasdaq: SHLD) is an American holding company headquartered in Hoffman Estates, Illinois, a suburb of Chicago. It is the owner of retail store brands Sears and Kmart. The aim of this article is to highlight the dire state of SHLD based on its chart while we will leave the entire history and introduction of this retail giant here.
The monthly chart of SHLD shows that since the start of trading in April 2003 price was steady going up without much of a resistance. That duration was one of the bull market when everything went up. The cconomy was good, and spending habits in retail outlets was excessive. It was a stunning ~1225% gain for those who bought it from the first day.
At the height of its most glorious moment right before the 2008 global financial crisis hit a Sears stock was worth ~153. It fell to 96 and subsequently engaged in multi-year falling pennant. Instead of breaking above the massive pennant, price actually broke below the crucial support zone of ~19. Technically speaking if a price breaks a support especially a multi-year support, the severity cannot be ignored. The plunge of price sped up and currently at the time of writing this article, it is trading at 2.17.
If the ongoing channel holds well the ultimate price of SHLD could be around 0.90 – 1. As the saying goes, cheaper stock can get even cheaper, hence we warn against picking a bottom or catching a falling knife like this as it just doesn’t worth the effort when there are many other quality stocks around. At best, trade it using paper account as a practice.
SHLD is categorized by InvestingHaven’s team as the casualty of retail apocalypse due to the formidable competition from online shopping. It may or may not spark a comeback in 3 to 5 years down the road. However, not every crushed stock is behaving like this. It definitely will not get the level of these 4 retail stocks that are bullish in 2018.
This is how InvestingHaven’s research team screens and studies the entire price structure, and deducts the fundamental implication of why prices move in certain way(s).