Dallas, Texas 04/21/2014 (FINANCIALSTRENDS) – DSW Inc (NYSE:DSW) has been in a fierce downtrend and has is currently trading below its 50 day and 200 day moving averages. Once the stock went below the all-important support at $36.37 it saw massive selling by traders. The stock found support at $34.68 but on the bounce back the 50 day moving average gave very good resistance and stock slid below the support zone again and now has also broken the support zone at $34.68 and headed lower. And this is on the back of very high volumes which is very bearish trend.
The momentum indicators for DSW Inc (NYSE:DSW) have been negative for a period of time now testament to the down move the stock has seen over the past few months. The relative strength index for the stock too has been in bearish territory but isn’t showing any signs of inherent strength which makes us believe that the stock can go lower in the coming trading sessions and easily test levels of $31.80 in the very short term.
The weekly charts for DSW Inc (NYSE:DSW) paint a similar picture for the stock, wherein the stock has been in a fierce downtrend which has seen the stock fall below its 50 day weekly moving average at $39.35. We believe that this down move would continue and we might see levels of $30.77 in the very short term as both the momentum and relative strength index as indicators have given sell signals which confirms our bearish bias on the stock.
(Figure): Daily chart for DSW Inc (NYSE:DSW)
Latest Buzz:
DSW Inc. (NYSE:DSW) announced that the company had entered into a definitive agreement with Town Shoes wherein the company for cash would take up 44% stake in the company for CAD $68 million. The company also announced that the stake sale/purchase has been approved by both sets of Board of Directors.
