Urban Outfitters Well Structured Setup

Published on Friday, 03 September 2010 17:56 Written by Christian Paolinetti

New York, September 3rd (TradersHuddle.com) - Shares of Urban Outfitters, Inc. (NASDAQ:URBN) closed the trading session at $33.10 near its 50 day and 200 day moving averages currently set at $32.97 and $34.51 respectively. Urban Outfitters' price action is above the 50 day moving average but below its 200 day moving average, which provide a nice trading setup, with clear reference points.

Urban Outfitters, Inc. (NASDAQ:URBN) operates retail stores and a catalog and Web sites. Urban Outfitters and Anthropologie retail concepts sell fashion apparel, accessories, and household and gift merchandise.

Urban Outfitters price action seems to be setting up for a tight range between the 50 day moving average as support and the 200 day moving average serving as resistance.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Urban Outfitters with a small position and wait for the stock to break out above the 200 day moving average at $34.51, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 50 day moving average set at $32.97 breaks it could mean further downside in the horizon for Urban Outfitters.