Francesca Trying to Reassert Itself

As oil prices slide further this morning, consumers are seeing some relief at the gas pump as a silver living. Of course, there is no free lunch in economics, and the lower oil prices could easily portend continued pedestrian growth in the economy, or worse. 

Nonetheless, retail stocks continue to notably outperform to the upside this week. Housed in the XRT sector ETF, we noted the strength for Members last evening and are not ignoring the follow-through higher out of the gate this morning. 

One of the top holdings in the XRT is Francesca's Holdings Corporation, seen below on the daily chart. 

FRAN illustrares the technical predicament many retail players seem to be facing here: Whether they can cement a major base bottom or not will dictate their performance into the back half of 2016. Earnings are not until September, as is the case with many retail names reporting late in an earnings season. 

And if FRAN can clear $13 here I suspect that major gap (purple line) up to $14.75 becomes viable to be filled if the savings at the gas pump translate into better retail sales.