Francesca’s Holdings Corp (NASDAQ:FRAN) – Technical Analysis


Dallas, Texas 04/21/2014 (FINANCIALSTRENDS) –  Francesca’s Holdings Corp (NASDAQ:FRAN) on the daily chart has broken below a very important support zone at $17.5 from where the stock had previously taken support and bounced higher. Another thing to point out is the fact that the stock has broken below this support zone on the back of very huge volumes and has seen volumes go up on all down days pointing towards high level of bearishness in the stock.  The stock currently trades below both its important moving averages that are the 200 day and 50 day moving averages which signifies the strong downtrend the stock has been in.

The momentum indicators for Francesca’s Holdings Corp (NASDAQ:FRAN) are in the negative and showing signs of a bounce back which leads us to believe that the stock can lower and test levels of $15.62 in the very short term. The relative strength index for the stock too has been in a strong downtrend and we do not see any kind of momentum returning or inherent strength in the price action which would lead us to believe of an impending pull back.


The weekly charts for Francesca’s Holdings Corp (NASDAQ:FRAN) paint a similar story for the stock as we can see the strong down move that the stock has witnessed over the last couple of months which has pushed the stock below its 50 day weekly moving average. The momentum indicators as well as the relative strength index are both showing sell signals and we believe the stock can easily retrace to levels of $14.32 in the very short term.


(Figure): Daily chart for Francesca’s Holdings Corp (NASDAQ:FRAN)

Latest buzz:

Francesca’s Holdings Corp (NASDAQ:FRAN) reported Q1 earnings which disappointed the street. The CEO for the company reported that sales were even lower than their revised guidance.

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