The $100 level recently rejected the shares
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Department store name Five Below Inc (NASDAQ:FIVE) was just rejected at the round $100 level, which coincides with its -50% year-to-date mark and its 20-week moving average. This region was also the gap-down level from the CEO’s resignation on July 16th.
To make matters worse, FIVE finished the week with an inverted hammer pattern on the weekly chart. Now stalling, the shares are starting to turn near a call stack at the 95- and 100-strikes for October and November expirations.
Despite the recent downtrend, analysts have kept their neutral or bullish positions. The first downgrade to “sell” occurred this month, and of the 24 positions, this remains the only bearish rating. Given near-term pressure, more could follow suit.
Our recommended November put has a leverage ratio of 6.1, and will double on an 13.9% fall in the underlying shares.