BY Dennis Hobein:

Contributor, Stock Traders Daily

Real Time Trading Reports:  Included are detailed trading reports designed to help investors realize opportunities in these companies.  The reports are linked to the stock symbols in the article below.

 Performance - Click Here

(La Jolla, CA) 

Before the market opened on Dec. 11, November retail sales numbers were released. Overall, the data was impressive, as they came in at +1.3% vs. the +0.6% consensus. The strength can be partially attributed to the rising price of gasoline with service stations reporting a 6% bump in sales. However, even if one excludes those increases, retails sales still posted a solid 0.8% gain last month. With retail stocks showing strong gains, we decided to take a look at a few names that may break through key resistance levels. While we provide a general analysis of some key technical levels in this article, we strongly suggest reviewing our much more detailed free trading reports on these stocks for more in-depth coverage – simply click on the ticker symbol to access these.

Best Buy Ready To Re-Challenge $45 Level

After surging about 33% in March, shares of Best Buy (NYSE: BBY) have moved in a sideways fashion, generally trading in a $35-$40 range. The stock pushed higher in November, and looked poised to challenge a key $45 resistance level, however, it has trailed off over the past few sessions. This drift lower has placed the stock right at its 20-day moving average. With yesterday’s move, the stock is approaching new 52-week highs and appears ready to re- challenge that $45 area.

Home Depot Poised To Make 52-Week Highs

Despite the troubles in the housing markets, shares of home improvement retailer Home Depot (NYSE: HD) have performed well this year, currently, up 23% for the year. Looking at its most recent performance, the stock has been even more impressive when compared against the broader market. Since November, HD is +13% versus +7% for the Diamonds Trust (NYSE: DIA) – an ETF that corresponds to the performance of the Dow Jones Industrial Average. Importantly, the stock tested its 20-day moving average on Dec. 9 and bounced higher. Had it failed to hold that support, shares may have dropped to the next support level at around $27. With today’s move higher, the stock is now poised to make a move above its 52-week high of $28.50.

Fundamental And Technical Concerns For Gap

At the open yesterday, shares of apparel retailer Gap (NYSE: GPS) bounced off its 20-day moving average (on a weekly chart) and then popped higher to post a 1.5% gain. The stock has essentially done nothing since the beginning of September, trading between $21-$23. Compared to other retailers, its November sales were not as strong, coming in flat year-over-year. For example, its peer Aeropostale (NYSE: ARO) reported a positive 7% comparable sales number in November. The fact that GPS is a company still trying to rebound from the turmoil of the past few years, combined with near-term resistance at the $22 area, GPS is a challenging long at this point.

Kohl’s Has Several Key Resistance Levels Overhead

Another retailer that has not fared well of late is department store Kohl’s (NYSE: KSS). Since mid-October, the stock has steadily drifted lower from $60 to $55. Yesterday, the stock was able to push through the 20-day moving average, but it still has the 50-day overhead at $56.50. Then, above that, the stock has a resistance zone at $60. With several important technical levels involved here, we would suggest reading the free trading report on KSS first to see the best entry/exit prices.

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