Tractor Supply Company

06/05/14 01:54:54 PM

by Koos van der Merwe

Here's a retail store to watch as the American economy recovers.

Security: TSCO
Position: Buy

Tractor Supply Company (TSCO) is a large retail chain of stores that offers a number of products for home improvement, agriculture, lawn, and garden maintenance, as well as livestock, equine and pet care. It is a leading US retailer in its market. In 2004 Fortune magazine added TSCO to its list of the 100 fastest growing businesses.

Figure 1. Monthly chart with Elliott wave count.

Graphic provided by: AdvancedGET.

The chart in Figure 1 is a monthly chart that shows how the share price rose from a low of 49 cents in November 2000 to a high of $78.42 by December 2013. The Elliott wave count on the monthly chart is suggesting that the share price is correcting in a WAVE 4 with a target of $61.25 or $50.68. The target for WAVE 5 is $105.66. The PTI (probability index) is 54, suggesting that price could indeed rise to that level once WAVE 4 is complete. The RSI index is suggesting a sell signal confirming the WAVE 4 correction.

Figure 2. Daily chart with Elliott wave count.

Graphic provided by: AdvancedGET.

The daily chart in Figure 2 suggests that the share price is a buy at present levels. The stochastic indicator is suggesting a buy at the present level and the Elliott wave count is suggesting that the ABC correction is complete at $62.63.

Figure 3. Daily Omnitrader chart showing Vote line buy.

Graphic provided by: Omnitrader.

The chart in Figure 3 is the Omnitrader chart that brought the buy in TSCO to my attention. Note the buy signal given in the Vote line, based on the Red Green Strategy Long 6 and the Red Green Strategy Long Stop. The Advisor rating as shown in the chart is 84, a strong rating suggesting that a buy at the present price would be a profitable one. The TDIJak indicator and RSI indicator shown on the chart are suggesting a buy.

I would be a buyer of TSCO shares at the present price for a long-term hold.

Koos van der Merwe

Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.

Address:	3256 West 24th Ave
	Vancouver, BC
Phone # for sales:	6042634214
E-mail address:	petroosp@gmail.com

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TECHNICAL ANALYSIS

Tractor Supply Company

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