Over the past few months, shares of Aaron’s Inc. (AAN) have been consolidating under a critical level.
AAN is a retailer of furniture and consumer electronics. The company retails televisions, computers, tablets, mobile phones, furniture, mattresses, washers, dryers, and refrigerators. In July the company announced it would separate into two public companies, Progressive Leasing and Aaron's Business.
Take a look at the 1-year chart of AAN below with my added notations:
AAN has formed a key level of resistance at the $60 (red) mark. The stock has tested that $60 level twice since the beginning of August, and a solid close above that price should lead to higher prices for AAN.
A long trade could be entered if the $60 resistance level is exceeded, with an expectation of a breakout.
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Christian Tharp, CMT
AAN shares were unchanged in premarket trading Tuesday. Year-to-date, AAN has gained 3.68%, versus a 7.14% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp, CMT
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock.
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