Last week, leading fashion retailer Nordstrom (NYSE:JWN) was the latest department-store stock to drop sharply after reporting earnings. On May 10, Nordstrom was trading around $50 a share; today it's trading at $40.74. Traders and investors can easily see Nordstrom's weakness along with other department-store stocks like Macy’s (NYSE:M), JC Penney (NYSE:JCP) and Kohl’s (NYSE:KSS). Simply put, the leading retail stocks have been very weak on the charts.
Nordstron is approaching a solid support level around the $37.75 level, which happens to be the 200-month moving average. Believe it or not, moving averages are very important on all time frames. Traders should look for this $37.75 level to be defended by the institutional crowd. This important area on JWN stock was also defended in June 2016 and should find support again when retested.
