Tuesday, June 3, 2014

CONN’S, Inc. (NASDAQ: CONN)

Conn’s, Inc. operates as a specialty retailer of durable consumer goods and related services in Texas, Arizona, Louisiana, Oklahoma, and New Mexico, the United States. The company’s stores provide home appliances, including refrigerators, freezers, washers, dryers, dishwashers, and ranges; furniture and mattresses comprising furniture and related accessories for the living room, dining room, and bedroom, as well as traditional and specialty mattresses; and home office products consisting of computers, tablets, printers, and accessories. Its stores also offer consumer electronics, such as LCD, LED, 3-D, ultra HD, and plasma televisions; Blu-ray players, home theater and video game products, digital cameras, and portable audio equipment; and lawn and garden products, repair service agreements, installment credit programs, and various credit insurance products.
To analyze Conn’s stock for potential trading opportunities, please take a look at the 1-year chart of CONN (Conn’s, Inc.) below with my added notations:
1-year chart of CONN (Conn's, Inc.)
After hitting its peak of $80 in December, CONN fell rapidly into February. Once the stock started to rebound, it eventually stalled at the key level of $47.50 (blue). You will notice that the $47.50 level has been important to CONN whenever the stock has been above or below it. A break back above that level should mean higher prices for the CONN.

The Tale of the Tape: CONN has a key level of resistance at $47.50. A short trade could be made on any rallies up to that $47.50 area with a stop placed above that level. A break back above $47.50 would negate the expectation for a lower move and would provide an opportunity to go long on the stock.
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