Freds Inc. $FRED is recovering nicely after it announced selling a significant portion of its pharmacy business to Walgreen $WBA back in September. We then saw a pullback that held above some key moving averages, which was a bullish sign:Fred's Inc. (FRED) Survives Critical Support TestWe also suggested upside to $4.00 because price appears to be in bullish reversal mode.Fred's Inc. (FRED) in a Bullish Reversal AttemptHowever, during the currently weak sentiment in the equities market, I would be conservative and anticipate resistance around the $3.50 support/resistance pivot.FRED Daily Chart(click to enlarge)Bullish Reversal?- If price holds under $3.50, FRED might not be bullish yet. Maybe it only shifted from a bearish to sideways market. - However, if price is able to anchor above $2.35-$2.50 area, we can add confidence in the bullish reversal scenario.- In this scenario, the aggressive outlook would be towards the $7.70-$8.00 area. Note that even this bullish outlook only brings price back to the bottom a previously support since 2008. FREDS Weekly Chart(click to enlarge)