Was Pullback A Chance To Buy Shares?

WorldRich.net 08-09-16

This youth apparel retailer cleared a base in heavy volume in August before advancing to a record high in mid-October.

The stock then fell below its 10-week moving average the following week, which ended Oct. 19.

At its Aug. 8 breakout, the stock sported mostly high marks from IBD: 93 Composite, 94 Earnings Per Share, 85 Relative Price Strength and an A SMR Rating.

Profit growth ranged from 33% to 100% in the four quarters leading up to the breakout. Sales growth was solid too, at a minimum level of 41% during those periods.

The market looked good at the time, with the Nasdaq composite near multiyear highs.

Yet the stock in question didn't just pull back to its 10-week moving average. Instead of finding support, it fell below the line, and in slightly heavier trade.

Based on the above factors ¡ª ratings, fundamentals, market movement and stock action ¡ª would you have bought, sold or held shares the week ended Oct. 19?




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