(Ollie’s bargain outlet) Have been watching this one for a while and looks like they took a recent hit due to a miss on earnings. But everything about this company is screaming crazy growth. My State does not have one of these stores so can’t get a full vibe on the overall business atmosphere /product line.
Yeah they dipped after poor results. It was funny when asked about their guidance for the rest of the year they refused to answer
“Will things get better or worse in the second half? Excellent question. Next question please – because instead of offering investors guidance about what to expect for the remainder of 2021, Ollie’s management begged off.”
Must have been a pretty bleak forecast.
The chart is in a downtrend since early august (before earnings…) and no sign of reversal as of today. I would back off for now until the uptrend resumes. I wouldn’t risk my money on something that’s going down (aka catching a falling knife) even if growth is supposedly in the horizon.
while the price is still down-trending, the daily chart is showing signs of reversals. if i were interested in this company, i would initiate a small tier position with a safety stop at $60, and add as the price moves up.
it may get a rejection at the first test of the 50-day simple moving average, but that can be an opportunity to add if the price does not completely roll over and hit my stop (which I would have increased to trail the price in between).
once the price successfully breaks the 50-day simple moving average, i would have my stop at the 50, and let the trade work, i.e. stop micro-managing it.
and Allah knows best.