On Dec. 1, B. Riley Securities maintained its Neutral rating on Chico's FAS, Inc (NYSE:CHS) and raised its price target to $6. The upgrade caused the stock to shoot up to the $6.05 level where it ran into resistance and closed the day down over 11%.

• There is a possibility Chicos has settled into a bear flag pattern on the daily chart, with the pole created between Nov. 23 and Nov. 30 and the flag formed between Dec. 2 and Thursday. If the stock drops through the lower ascending trendline of the flag on high volume the pattern was likely recognized.
• Within the flag, however, Chicos has been trading in an uptrend, making a fairly consistent series of higher highs and higher lows. If the stock can regain support at the eight-day exponential moving average EMA) it would be bullish because the move would negate the bear flag.
• Traders may want to wait until the stock has regained the eight-day EMA as support before taking a position and the moving average has been a solid guide in the past for Chicos.
• Chicos has resistance above at $5.64 and $6.05 and support below at $5.04 and $4.38.

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