Express, Inc. (NYSE: EXPR)

Express, Inc. operates as a specialty apparel and accessory retailer primarily in the United States. Its stores provide apparel and accessories for women and men between 20 and 30 years old across various aspects of the lifestyles comprising work, casual, jeanswear, and going-out occasions. As of August 27, 2014, it operated approximately 630 retail stores located primarily in shopping malls, lifestyle centers, and street locations in the United States, Canada, the District of Columbia, and Puerto Rico. Express, Inc. also distributes its products through the company’s e-commerce Website, express.com, as well as franchisees Express stores in Latin America and the Middle East.

Take a look at the 1-year chart of Express (NYSE: EXPR) with the added notations:

1-year chart of Express (NYSE: EXPR)

After declining into May, EXPR has traded in a large sideways range. During the May to October timeframe, the stock has also created a key level at $14 (green). You can see how that level has been both a prior resistance and a prior support. Now, the stock has approached $14 again and that could provide another bounce higher.

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The Tale of the Tape: EXPR has a key level of support at $14. A trader could enter a long position at $14 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach