Ascena Retail Group (NASDAQ:ASNA) is a specialty retailer with several brands, including Justice, Lane Bryant and Dress Barn. And the stock took a hit over the summer from its highs in mid June.
The chart below shows a gap down in July and then continuation to a low with the market August 24. This took it below the 200-day SMA and finally out of the Bollinger Bands®. But since August 24, it has done nothing but move higher.
In fact the move up to 14 took it back over the 200-day SMA last week. The slight pullback since then created a Cup-and-Handle pattern, which targets a move to 17 on a break higher. The conditions are ripe for this to happen. The RSI is rising in the bullish zone while the MACD is avoiding a cross down and heading higher too. With over 13% short interest there is also the possibility of a short squeeze to give it a boost. The last hurdle seems to be the 100-day SMA at about 14. A move over that and it'll be time to go shopping.