Victoria’s Secret No Longer a Secret - VSCO’s Breakout Potential

Today, we’re diving into Victoria’s Secret & Co. (VSCO), a stock that seems to be shaking off its decline and showing a strong technical setup.

Let’s start with the daily chart. Here, you’ll notice a classic base breakout setup. The price has surged through resistance, signaling momentum, accompanied by a MACD crossover and an RSI momentum breakout. It’s like the market is waking up to this name after months of consolidation.

But the story gets even better when we zoom out to the weekly chart. First, we see the stock breaking out of a long-term downtrend line, and more importantly, doing so in conjunction with a rising 50-week simple moving average. This is where things start to get exciting for the longer-term view.

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Now, take a look at the second weekly chart. This chart highlights how the 38.2% Fibonacci retracement level acted as a key polarity zone — serving as both support and resistance before finally giving way to the upside. As we push higher, there’s a large base just below the 50% Fibonacci level, aligning perfectly with the all-time high anchored VWAP.

The magic number here is $32. If VSCO can break above that level, clearing the anchored VWAP, it opens the door for a run to $39, which coincides with the 61.8% Fibonacci level. Momentum, technical structure, and key price levels are all coming together in this setup, making it one to watch closely as we move forward.

Conclusion: Keep VSCO On Your Not-So-Secret Watchlist

This is one to keep on the radar for a potential strong finish to 2024 heading into 2025. If you’re looking for technical setups with the promise of upside, VSCO could be it.

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