Macy's: Light and Shadow in Challenging Times

Macy's continues to face challenges as the company forecasts that sales in the important holiday quarter could fall slightly below previous expectations. This is due to underperforming stores. As early as February of last year, the retailer announced plans to close 150 underperforming stores within three years to boost profitability while focusing on more lucrative locations. A glimmer of hope remains in the prospect of a gradual improvement in comparable sales for the second consecutive quarter. The price of Macy's shares has fallen 14% since the beginning of the year and is 21% lower compared to the previous year. Investors hope that the restructuring measures initiated will soon lead to stronger sales growth. From a technical analysis perspective, the stock has been moving in a descending channel for 13 months, with the recent price decline occurring under high trading volume and potentially triggering further downward pressure. A price target around $13 is emerging, supported by previous highs from November and the lower boundary of the channel. If the stock falls below this level, significant support could be tested at $10.75. Any recovery movement keeps an eye on $18, a region marked by both the upper channel boundary and previous price structures. A long-term recovery could ultimately lead the price towards $20.50, where a horizontal resistance line runs.