Tractor Supply Company (NASDAQ:) is setting up well for a fresh rally leg. The stock is piercing a key overhead trendline that links the May/July highs. This breakout-type move is pushing TSCO to its best close since May 11, 2021.
Despite reaching new three-month highs, TSCO is far from overbought (daily/MACD is neutral).
TSCO has been steadily rebounding after an early dip on July 19. The company reported very solid that day
The downside gap left behind on July 19 has provided resistance over the last few weeks. TSCO is beginning to put some distance on this key zone ($188.60).
TSCO sports a fairly high short interest ratio – 5.8 giving it upside fuel.
On the downside, a close back below $186.00 would violate this week’s low, sending a clear warning sign that today’s breakout attempt has failed.
Note: We have no position.
You can read Gary S. Morrow’s original post here.
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