FDO-Makes Sense

Think about this one for a second-you don't have to go much further than the name as far as your fundamental analysis goes. This has been in my portfolio since July 9th when I started buying Aug. $25 calls. I believe that the higher lows that have been created on the pullbacks on 6/24, 6/27, 7/1, 7/15, and 7/22 are a visual representation of buyers getting more aggressive in in competing for shares below the resistance level of $24.50, which is a long-term level going all the way back to 1999. The level is quite evident through the early 2000's and right through this year it has remained an active level, although volume recently has swelled as FDO has attracted some attention. My indicators are a little sloppy, but overall they suggest higher prices for FDO and I think that resistance level will be challenged by aggressive bidders sooner rather than later.