NEW BEARISH Plays
Urban Outfitters - URBN - close: 38.12 change: +0.15
Stop Loss: 38.60
Current Gain/Loss: unopened
Entry on September -- at $--.--
Listed on September 19, 2013
Time Frame: 3 to 4 weeks
Average Daily Volume = 2.8 million
New Positions: Yes, see below
Why We Like It:
URBN is in the apparel store industry. It's a tough business with a very price conscious consumer. Shares of URBN plunged a few days ago on worries that Q3 same-store sales would come in a lot lower than expected. URBN has been trying to hold support near $38.00, which happens to be the bottom edge of a very large $38-44 trading range.
The stock didn't participate (much) in the market's widespread rally yesterday afternoon following the Fed meeting. While shares displayed a little relative strength today the overall pattern still looks bearish.
Yesterday's low was $37.34. I am suggesting a trigger to launch bearish positions at $37.25. If triggered our target is the November 2012 lows near $34.50.
FYI: The Point & Figure chart has produced a sell signal and is forecasting at $31.00 target.
Trigger @ 37.25
Suggested Position: short URBN stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the Oct $38 PUT (URBN1319v38) current ask $1.10