Monday, February 1, 2016

Cabelas Inc (NYSE: CAB)

Cabela’s Incorporated, together with its subsidiaries, operates as a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise. The company operates through three segments: Retail, Direct, and Financial Services. The Retail segment sells products and services through its retail stores. The Direct segment sells products through its e-commerce Websites, such as and, as well as direct mail catalogs. The Financial Services segment issues Cabela’s CLUB Visa credit card, a reward based credit card program; and certificates of deposits, as well as underwrites credit statistics.
Take a look at the 1-year chart of Cabela’s (NYSE: CAB) below with the added notations:
1-year chart of Cabela's (NYSE: CAB)
For the most part, CAB has been in a large, sideways move over the past 6 months. During that time, the $40 price level has become very important to the stock, especially as a support. You will notice on the chart above that on 3 separate occasions the price of $40 has given CAB a bounce. The one time it didn’t, the stock fell to $33.

The Tale of the Tape: CAB has a key level at $40. A trader could enter a long position on a pullback to $40 with a stop placed under the level. However, if traders are bearish on the stock, a short trade could be made instead on a break of the $40 support.

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