The Win-Picks return for the month of June. The last Win-Picks was in March. Since then, I have taken a hiatus by accident. Life throws out a lot of curve balls and you strike out sometimes. The last picks were Dollar General, Hilton Hotels and Nike. All three have performed well since March. I did my digging to find some great set ups on stocks that can move. This month, I have found Limited Brands and Starbucks.
Like I pointed out on the podcast, retailers are not dead. The charts showed the potential for the price to begin to push higher. I used Macy’s as an example of finding support when it was extremely oversold. It has now flourished and has recently hit 52 week highs. In the spirit of going with beatdown retailers, I have found Limited Brands, stock ticker LB. This stock and I have a great history as it loves to perform well for me, haha. It has been on and off in my watchlist and it has now started to shape up from a double bottom pattern. The current close price is 36.99. It was back in August of 2017 that it was near this price. The chart is pointing to a double bottom at this level. To add to this, its longer term chart is showing major support at the 200 day moving average. Its breakout started many years ago from this level in 2011 and it is finally testing it out. All of these signals point to a move higher and this could be a move back towards its highs.
Starbucks, stock ticker SBUX, has been in a very small trading range and this price action can be viewed as bullish. With coffee being a major commodity and starbucks being the largest distribution, it is still positioned very strongly to outperform. Besides all that, the chart is showing a major bullish pennant forming on its longer term chart. The current close price is 56.60. With the price action being on pause for the last few years, I see a major move in the works in favor of the buyers. My target price is 80.
