Dick’s Sporting Goods (NYSE:DKS) fell sharply Tuesday after reporting poor earnings and guidance, trading down over 13%. As it collapses and long investors who held on are in pain, swing traders are beginning to scope out major buy levels.
After extensive analysis, I'm seeing a buy support level on the stock chart at $38. This is the first level I would consider buying for a swing long trade. Off this level, assuming the stock falls directly into $38, investors should see a solid bounce back above $40. Perhaps even a 10% bounce over multiple days to a week or two.