Limited Brands (LB) Stock Chart Analysis

While clothing retailers are not necessarily my first choice when it comes to potential long-term investments, I did receive a request from a Trendy Stock Charts member to analyze the charts for Limited Brands (LB).

Just because I have a dislike for a sector does not mean that it can't possibly make money. I mean what the heck, do I really mind researching the companies that fall under the Limited Brands umbrella? Not really. Ok, so maybe I am talking about researching the "visual" aspects of some of the companies.

Limited Brands (LB) includes companies such as:

• • • Victoria's Secret
    • Bath & Body Works
    • Pink
    • La Senza
    • Henri Bendel

If you want to learn more about Limited Brands (LB) & its portfolio of companies, you can visit their official website here.

To the right is Kate Upton, a Victoria's Secret model, showing off her personal pajama line for the company. There were plenty of nice Victoria Secret pictures to choose from but since is a stock website I figured it was better to keep it as G-rated as possible.

After you're done checking out the Limited Brands (LB) website, grab a few charts and head into the fitting room. Let's see if LB can offer a comfortable fit for your portfolio.

LB - 10 Year Monthly Chart

The first Limited Brands (LB) stock chart is a 10 year monthly candlestick chart. I like to start my analysis of a new company by looking at a long-term chart.

LB's share price developed a nice bullish reversal candlestick pattern, a Piercing candlestick pattern, in April 2017. That bullish reversal candlestick pattern developed on buying volume that was just slightly less than the previous month's total volume. I typically like when the buying volume from the bullish candlestick pattern is greater than the previous months volume.

I placed the black Fibonacci Retracement Tool and the blue Fibonacci Extension Tool on the chart to help calculate some pullback areas. LB's share price fell just shy of the black 61.8% Retracement Line and also fell just shy of reaching the blue 100% Target Line.

One last item of concern is that the second selling wave had increased selling momentum as compared to the first wave down.

All these "just misses" seem to indicate that there could be one last push down. Currently, LB's share price has developed a Zig-Zag wave pattern. This wave pattern is a corrective wave pattern. However, if…...

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