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Possible Bullish Inside Day Candle Pattern Detected for Fred's (NASDAQ:FRED)

By Nick Russo

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Fred's (NASDAQ:FRED) based on the price action in the company's shares. Yesterday's price range of $8.74 and $8.92 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 Fred's may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Fred's, Inc. operates discount general merchandise stores in the southeastern United States. The Company also markets goods and services through Fred's Super Dollar Stores and Pharmacies and Fred's Xpress Pharmacies.

Potential upside of 72.7% exists for Fred's, based on a current level of $8.83 and analysts' average consensus price target of $15.25. Fred's shares should first meet resistance at the 200-day moving average (MA) of $14.63 and find additional resistance at the 50-day MA of $14.91.

In the past 52 weeks, shares of Fred's have traded between a low of $8.66 and a high of $20.05 and closed yesterday at $8.83, which is 2% above that low price. Over the past week, the 200-day moving average (MA) has gone down 0.5% while the 50-day MA has advanced 0.4%.

SmarTrend recommended that its subscribers protect gains by selling shares of Fred's on August 4th, 2016 by issuing a Downtrend alert when the shares were trading at $14.03. Since that call, shares of Fred's have fallen 37.8%. 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 fred's

Ticker(s): FRED