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Released on Thursday, November 3, 2011, 8:00 AM ET

Pittsburgh, PA (SpeculatingStocks) - A daily scaled 5-3 Elliot wave beginning back in October looks to be showing a potential up-swing in the next few days on women’s clothing apparel company Charming Shoppes, Inc. (NASDAQ:CHRS).

Charming’s stock is currently trading at $3.55 per share (4:00 PM EDT, November 2nd, 2011) has had a rather wild day, November 1st, 2011, spiking up to $3.55 per share, and bumping back down to less than 3.4 per share before rebounding up to a high of $3.60 per share and finally reducing down to its current trading level.

Unfortunately, the typical technicals do not give any idea to the momentum of this stock, but as previously noted the stock seems to trend along the standard Elliot wave pattern of 5-3, that is 5 reversals of up-trends and down-trends followed by 3 reversals of down-trend and up-trends, before the cycle repeats again. Currently CHRS seems to be trending upward on the first reversal of the 3 part stage of the theory.

The company’s financials show that this $413.48 million mid-cap stock is fairly stable, despite recent low revenue gains for the past few quarters.  Holding $1.95 of cash per share and a current ratio of 2.09 the company should be able to pay any outstanding debts when they come due, so little fear for insolvency here. In fact, the Charming’s total cash to debt ratio is 1.59, so they could clear all their debt instantly if necessary. This indicates that the company is stretching its gains on margin, an effective maneuver if you can posit returns, something which will present itself over the long run.

Overall not a bad company, a stock to watch, it is pretty cheap at the moment, and with a 52-week high reflecting $4.93 per share, it could be a nice quick short-term opportunity. Always ensure flexibility in your decisions, in this case CHRS has a volume of 2.3 million shares over a 3-moth average.

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