Tuesday, January 20, 2015

1-800-Flowers.Com Inc (NASDAQ: FLWS)

1-800-FLOWERS.COM, Inc. operates a florist and gift shop in the United States. The company operates in three segments: Consumer Floral, Gourmet Food and Gift Baskets, and BloomNet Wire Service. It offers various products, such as fresh-cut flowers, floral and fruit arrangements and plants, gifts, popcorn, gourmet foods and gift baskets, cookies, chocolates, candies, wine, candles, balloons, and plush stuffed animals. The company provides gourmet gifts, such as popcorn and specialty treats from thepopcornfactory.com; cookies and baked gifts from cheryls.com; chocolates and confections from fanniemay.com and harrylondon.com; gift baskets and towers from 1-800-BASKETS.COM; carved fresh fruit arrangements from FruitBouquets.com; steaks and chops from stockyards.com; and invitations and personal stationery from FineStationery.com.
Take a look at the 1-year chart of Flowers (Nasdaq: FLWS) below with my added notations:
1-year chart of Flowers (Nasdaq: FLWS)
Over the last few months FLWS has created a key trendline of support (green) at $7.30 and that line is also the “neckline” for the stock’s head and shoulders (H&S) reversal pattern. Above the neckline you will notice the H&S pattern itself (red). Confirmation of the H&S would occur if FLWS breaks its trendline support, while a move above the $8.50 resistance would negate the pattern.

The Tale of the Tape: FLWS has formed a head & shoulders pattern. A long trade could be made at $7.30 with a stop placed below that level, but ideally, the pattern implies a short trade to be entered on a break below that level instead.
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