Macy’s shares fall the most in three months on Thursday, despite better-than-anticipated quarterly comparable sales

Macy’s Incs (M) second-quarter comparable sales, reported on August 10th, dropped at a lesser rate than expected. However, the companys net revenue shrank more than what analysts on average had anticipated.

Macy’s shares closed lower for a third consecutive trading session on Thursday. It has also been the sharpest daily loss since May 11th. The stock went down 10.25% ($2.36) to $20.67, after touching an intraday low of $20.55, or a price level not seen since September 10th 2010 ($20.41). In the week ended on August 6th the shares of the department store chain lost 2.63% of their market value compared to a week ago, which marked the first drop in the past three weeks and also the largest one since the week ended on June 25th. The stock has extended its loss to 12.97% so far during the current month, following a 2.19% surge in July. The latter has been the first monthly gain since February. For the entire past year, the shares of Macy’s Inc gained 2.37%.

Sales at stores, which are open more than 12 months, including sales in departments licensed to third parties, were reported to have shrunk 2.5% year-on-year during the second quarter ended on July 29th. In comparison, analysts surveyed by research firm Consensus Metrix had anticipated a 3% slump in comparable sales.

At the same time, Macys net income attributable to shareholders increased to $116 million ($0.38 per share) during the second quarter ended on July 29th from $11 million ($0.03 per share) during the same period a year ago.

On the other hand, net revenue went down 5.4% to $5.55 billion during the second quarter compared with a lesser drop, as expected by analysts, to $5.75 billion.

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Macy’s Inc’s stock price, have a median target of $25.00, with a high estimate of $36.00 and a low estimate of $20.00. The median estimate is a 20.95% surge compared to the closing price of $20.67 on August 10th.

The same media also reported that 18 out of 24 surveyed investment analysts had rated Macy’s Inc’s stock as “Hold”, while 4 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Macy’s stock are presented as follows:

R1 – $20.88
R2 – $21.09
R3 (Range Resistance – Sell) – $21.30
R4 (Long Breakout) – $21.92
R5 (Breakout Target 1) – $22.66
R6 (Breakout Target 2) – $22.96

S1 – $20.46
S2 – $20.25
S3 (Range Support – Buy) – $20.04
S4 (Short Breakout) – $19.42
S5 (Breakout Target 1) – $18.68
S6 (Breakout Target 2) – $18.38

By using the traditional method of calculation, the weekly levels of importance for Macy’s Inc (M) are presented as follows:

Central Pivot Point – $23.62
R1 – $24.13
R2 – $24.97
R3 – $25.48
R4 – $26.00

S1 – $22.78
S2 – $22.27
S3 – $21.43
S4 – $20.60