Option Investor
New Plays
Printer friendly version
New Plays
Long Plays
Short Plays
ZLC None

New Long Plays

Zale Corp. - ZLC - close: 27.83 chg: -0.30 stop: 27.49

Company Description:
Zale Corporation is North America's largest specialty retailer of fine jewelry operating approximately 2,350 retail locations throughout the United States, Canada and Puerto Rico. (source: company press release or website)

Why We Like It:
Shares of ZLC have been slowing creeping higher in a rising channel for months. The consolidation this week has brought the stock toward support at the bottom of its rising channel. We considered using a trigger to short the stock on a breakdown below the 50-dma (near 27.50). Short-term technicals look bearish but ZLC has produced bearish technicals before and consistently bounced higher in this current up trend. We also noticed that volume has been above average for the last few days on the decline, which is also bearish. However, we're going to suggest a bullish position if ZLC bounces from the bottom of its channel again. Essentially, as long as the trend, which is up, is still in place we're going to play it. At this time we're suggesting a trigger to buy ZLC at $28.26, which is a few cents above Friday's high. If triggered our target is the $29.90-30.00 range. We do expect some resistance at $29.00 so be prepared for a pull back. FYI: The Point and Figure chart for ZLC forecasts a $37 target.

Picked on October xx at $xx.xx <-- see TRIGGER
Change since picked: + 0.00
Earnings Date 11/30/06 (unconfirmed)
Average Daily Volume: 376 thousand


New Short Plays

None Today.

Premier Investor New Play Archives