DKS Sports A Test Of Long-Term Support

Retailers were rocked on Friday with the five worst performing industry groups all in the retail space.  The S&P Retail index (XRT) dropped nearly 4% on Friday and more than 8% last week.  Many of the retail industry groups and stocks within those groups are at or challenging October 2014 lows on the heels of a poor monthly retail sales report that was released in pre-market action on Friday.  One of those companies, Dick's Sporting Goods (DKS), is testing an area of price support it's tested on several previous occasions over the past 3-4 years.  The 39.00-41.00 price support is very important for DKS in order to maintain its higher high and higher low uptrend off the 2009 lows.  One warning sign of a potential top in March 2015 was the unusually low volume that accompanied that final breakout (blue arrows).  Since that time, volume has accelerated as DKS has fallen roughly 30% off its high.  Check out the chart:

Happy trading!

Tom