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Possible Bullish Inside Day Candle Pattern Detected for Cato Corp-A (NYSE:CATO)

By David Diaz

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Cato Corp-A (NYSE:CATO) based on the price action in the company's shares. Yesterday's price range of $14.64 and $14.91 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of Cato Corp-A may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

The Cato Corporation and its subsidiaries operate and manage fashion stores. The Company offers merchandises, including dressy, career, and casual sportswear, as well as dresses, coats, shoes, lingerie, costume jewelry, handbags, men's wear, and lines for kids and newborns. Cato operates throughout the United States.

Potential upside of 35.1% exists for Cato Corp-A, based on a current level of $14.80 and analysts' average consensus price target of $20.00. The stock should find initial resistance at its 200-day moving average (MA) of $36.82 and further resistance at its 50-day MA of $37.17.

In the past 52 weeks, Cato Corp-A share prices have been bracketed by a low of $14.46 and a high of $38.39 and closed yesterday at $14.80, 2% above that low price. In the last five trading sessions, the 50-day moving average (MA) has climbed 0.2% while the 200-day MA has remained constant.

SmarTrend recommended that its subscribers protect gains by selling shares of Cato Corp-A on November 28th, 2016 by issuing a Downtrend alert when the shares were trading at $30.89. Since that call, shares of Cato Corp-A have fallen 52.9%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish am inside day candle cato corp-a

Ticker(s): CATO