Send me real-time posts from this site at my email
Fan Yang

Fred's Inc. (FRED) in a Bullish Reversal Attempt

Recently, we saw a surge in Fred's $FRED after it shed a significant part of its pharmacy business. After a pullback, we noted that holding above $2.00 and the moving averages (100-day and 50-day) was a key sign that bulls are in control.

Fred's Inc. (FRED) Survives Critical Support Test

FRED Daily Chart

(click to enlarge)

Defensive Consumer Staple:
- If the economy stagnates, we see a lot of stocks dragged down. However, certain consumer staples like general supermarkets might be defensive. 
- It is the case with FRED at the moment. As the markets retreat, FRED is rallying.
- We can also attribute the rally to the fact that it has short-term bullish momentum after the early-September surge.
Upside:
- The ability to hold above $2.00 suggests price will come up to at least test the $3.00 high from September, with a good chance of breaking higher.
- Above $3.00, we might want to limit our expectation to the $3.50 support/resistance pivot unless the $3.00 resistance becomes support.
- At the moment, if price can anchor above $2.30, we can gain more confidence for the bullish outlook.
- A break below $2.18 on the other hand would be a BAD sign for the bullish outlook. If this happens, we might want to step back and reassess. 

Welcome!!! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue