Radio Shack Shares Rise from Technical Bottom on New Executive Hires

Andrew Klips |

Radio Shack Shares Rise from Technical Bottom on New Executive HiresShares of embattled electronics retail chain RadioShack Corp. (RSH) are on the climb again Wednesday following a pullback on Tuesday after six straight green closes.  This morning the Forth Worth, Texas-based company said that it has appointed Troy Risch as executive vice president of operations and Huey Long as executive vice president of strategy and consumer insights. Starting January 2, 2013, both will report to Dorvin Lively, interim CEO of RadioShack.

Risch, a 19-year executive veteran at Target Corp. (TGT), will oversee store operations and real estate.  Long, whose resume includes executive positions Amazon.com (AMZN) at Wal-Mart (WMT), will be responsible for marketing, business development and omnichannel.

“These are two key roles that will influence the company's strategy, execution and future success,” said Lively in a corporate statement.

Meanwhile, the RSH chart is making a nice move off a technical bottom at an all-time low of $1.90 late in November.  Technical traders that played the “double bottom” pattern when those lows were hit again earlier this month have seen gains of more than 20 percent in less than two weeks.  So what’s next?

The move off the bottom support has broken a long-term downtrend for RSH, but is facing a technical resistance in the area of $2.50.  Should the upward pressure sustain to break through the resistance, the upside to the next level of resistance is about 60 cents to $3.10.

A culmination of news and technicals, investors are responding favorably to the additions of experienced executives to the RadioShack team and the technically-sound chart.  As the image shows, as of 10:38 AM ET, shares of RSH are up 6.28% on Tuesday.

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Companies

Symbol Name Price Change % Volume
WMT Wal-Mart Stores Inc. 70.08 -0.26 -0.37 10,756,653
NOA:CA North American Energy Partners Inc. 4.86 0.01 0.21 184,107
TGT Target Corporation 77.39 -0.45 -0.58 4,047,724
AMZN Amazon.com Inc. 768.66 1.33 0.17 2,470,923

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