Fred's Inc. $FRED surged in September after it announced selling of a significant number of its pharmacies to Walgreens $WBA. This divestment should improve its operational efficiency, and the market liked it. Price surged from around $1.65 before the announcement to $3.00 afterwards. But as with a lot of these surges, we saw price come plunge back down to earth. We noted that if price can hold above $2.00, the bullish outlook was still in play. After testing this support and cracking it a few times, the market ended up supporting FRED at this level, thus maintaining a bullish outlook.FRED Daily Chart(click to enlarge)Bulls in Charge:- The pullback was sharp but respected $2.00 despite initially cracking this critical support area.- Price is holding above a key support/resistance pivot and the 100- and 50-day simple moving averages (SMAs). - Meanwhile, the RSI is holding above 40 after retreating from above 70. This reflects maintenance of that September bullish momentum.- Overall though, price is still under the 200-day SMA so we can't say there is a bullish trend even in the medium-term. - We can say that the prevailing downtrend could be shifting to at least a sideways market, or some kind of bullish correction in the medium-term.- For now, I would limit the upside to the $4.00 area, which is near the 2018-high of $4.30.- I think we can be more confident of the upside in the medium-term once price starts anchor above $2.50. For now, anchoring above $2.00 is a strong bullish sign for the short-term.