Chart of the Day: Sears Continued Upside Looks Likely (SHLD)

Sears Holdings Corporation (NASDAQ: SHLD) was set up as the chart of the day after the close on Wednesday.  Thursday’s market weakness is not exactly cooperating but the unusual trading activity in Sears often has no logic nor any market correlation.   Here is the chart, with more detail after:

In candlestick terminology, Sears is attempting to experience another Fry pan bottom breakout.  While this chart has fluctuated today, the expectations of a Fry pan bottom breakout is a strong price move as can be seen around January 12.

A Fry pan bottom is a slow rounding bottom action giving investors time to see the investor sentiment is building back up. The slow rounding bottom of the Fry pan bottom pattern has been forming again since January 23. The bullish engulfing signal, forming on the T line, the eight exponential moving average, indicates a strong bullish signal at the time the Fry pan bottom pattern should be breaking out.

Our technical analysis partner is CandlestickForum and the chart indication implies that the next upside target is likely headed the key 200-day moving average.  Through our relationship with CandlestickForum you may gain immediate access to his training videos and more works significantly better.

Sears has just opened and has been fighting between being up and down for the day so far.  After closing at $52.60, its 52-week trading range is $28.89 to $94.79.