11/17/99 Staples Inc
(SPLS)
Points to watch:
Staples has made a sharp recovery since
bottoming on November 9th at 16.43. The stock gapped up at the open
on Monday, finishing the day up almost 3 points. Yesterday the stock
gained another 0.63 to close at 25.38 after the company released better
than expected earnings before the bell. The stock traded as high as 26
intraday yesterday.
Staples looks ready to move higher, and
short term technical indicators have added confirmation to the stock's
recent rise. Daily OBV, RSI, and stochastics all turned up sharply
in early November, and yesterday daily MACD gave a buy signal.
Before it can move higher the stock must
still overcome resistance at 26.5, a level which acted as resistance in
August and provided support on several occasions during the first 5 months
of the year.
A buy signal would be given on a break
above 26.5, with the stock then running into the next resistance at
30.13-30.5, 32.25, and 35.75. Support is at 24.4, the 50%
retracement of the stock's July-November decline from the left shoulder of
a head and shoulders top.
