Key takeout
Stocks of Kohl’s Corp. (KSS) surged Tuesday in the absence of news about retailers, a move reminiscent of the 2021 memestock frenzy.
Given that almost half of Cole’s float is held by short sellers, the stock may have received a boost from the short squeeze. Tuesday’s trading action repeated the Meme-Stock Rally from four years ago. Reddit users have targeted significantly reduced retail stocks, including video game seller GameStop (GME) and cinema chain AMC Entertainment (AMC).
Kohl’s shares rose 38% at $14.34 on Tuesday, the highest level since December. The stock, which more than doubled early in Tuesday’s session, has returned to 2025’s positive territory.
Below we take a closer look at Call’s weekly charts and use technical analysis to identify key price levels that tactical traders may be looking at.
Volume Signal Meme Driven Trading Activities
After bottoming out in early April, Cole’s stocks steadily rose before today’s Pop. It is worth pointing out that by 2:20pm on Tuesday, about 183 million shares were about 25 times the 25-day moving average volume of stocks, indicating meme-driven trading activity.
The stock has recovered above the 50-week moving average, but the relative strength index is below the level that was bought.
Identify three overhead areas on Kohl’s charts to monitor whether your purchase insanity continues and find the key support levels worth monitoring amidst a profitability.
Overhead area to watch
The Watch’s first overhead area is around $29, and this location finds a nearby 200-week resistance confluence from MA and a trendline connecting multiple peaks on the chart between June and April of 2020 last year.
Buying over this area can cause a rally towards $45. Stocks may encounter sales pressure at this level near a series of troughs on the charts, which will grow from August 2019 to January 2022.
The next highest area to track is $64. The surge into the region could face considerable resistance near several peaks formed on the charts between March 2021 and April 2022.
Key support levels worth monitoring
During a volatile profit-earning event within the stock, investors should monitor the $11 level. Tactical traders were able to see the location’s high “Buy DIP” area near the 2020 pandemic cyclone and the short period of consolidation this February.
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As of the date this article was written, the author does not own the above securities.
