Sally Beauty Holdings: Attractive on Multiple Timeframes

By | May 21, 2015

On the weekly chart you can see the stock has recently tested a number of support lines and the 40 week (200 day) moving average, and is currently up against resistance that marked the 2013 and 2014 highs.

55521.SBHweekly

55521.SBHdaily

On the daily timeframe the price momentum and money flow indicators are all turning positive as this key resistance level is being tested. The RSI is attempting to cross above its centerline and the MacD is making a bullish crossover, as the Money Flow Index, a volume-weighted relative strength measure, has turned positive, and Chaikin Money Flow, a 20 day average of Accumulation/Distribution, is on track to cross above its centerline. SBH is a good risk/reward trade after a close near current levels, with an initial percentage trailing stop under the 200 day moving average.

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