Watch These Macy's Price Levels as Stock Slumps on Soft Sales Guidance

Macy's (M) shares tumbled nearly 7% on Monday morning after the retailer warned that its fourth-quarter results would be negatively impacted by underperforming locations. The company anticipates flat comparable store sales and overall sales at or below its earlier guidance. This news has investors keeping a close eye on Macy's stock price, with key price levels to watch as the stock slumps on soft sales guidance.

Macy's struggles are not new, as the company has been grappling with lower sales and multiple challenges for some time. Last February, Macy's announced plans to close 150 underproductive stores over three years, and just last week, it released a list of the first 66 locations to be closed, including stores in Philadelphia Center City and Downtown Brooklyn. The company is also investing in 350 "go-forward" locations across the country through fiscal 2026.



Macy's CEO Tony Spring remains optimistic about the company's "Bold New Chapter" strategy, which aims to achieve sequential comparable sales improvement. However, the recent guidance suggests that the retailer still has work to do in turning around its fortunes. Investors should pay close attention to the following price levels as Macy's stock continues to react to the latest news:

1. Support at $17.00: Macy's stock has found support around the $17.00 level in the past, and a retest of this level could provide an opportunity for bargain hunters to enter the market. Keep an eye on this price level as a potential buying opportunity if the stock continues to decline.
2. Resistance at $20.00: Macy's stock has struggled to break above the $20.00 level in recent months, and this price level has acted as a significant resistance point. If the stock can overcome this resistance, it could signal a potential turnaround in the company's fortunes and provide a bullish signal for investors.
3. 50-day moving average (DMA): The 50-day moving average has recently crossed above the 200-day moving average, generating a golden cross buy signal. This technical indicator suggests that the stock may be poised for a rebound, and investors should monitor the 50-day DMA as a potential support level for Macy's stock.

In conclusion, Macy's stock is facing headwinds due to soft sales guidance and ongoing challenges in the retail sector. However, investors should keep a close eye on key price levels, such as $17.00, $20.00, and the 50-day moving average, as these levels could provide valuable insights into the stock's potential direction. As Macy's continues to adapt to changing consumer preferences and implement its turnaround strategy, investors should remain vigilant and monitor the company's progress closely.