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Pro: This stock is set to break out

VIDEO2:2402:24
Pro: This stock is set to break out

Macy's reported Q4 earnings on Tuesday coupled with some disappointing guidance, but "Fast Money " and RiskReversal.com's Dan Nathan says now is the time to buy the stock.

The retailer issued cautious guidance for 2015, but once investors had a chance to digest its plan for the year the stock erased its previous losses. In a reversal from its usual cost-cutting ways, the company is now planning on spending more than $1 billion to expand internationally with a focus on off-price stores to target low-end customers.

"Macy's looks poised for a play back up to the previous 52-week highs, it's also the all-time high, just above $68," Nathan says. He added, "Right here at about $63.50 looks like a good long entry." If the stock heads lower, Nathan said that he would stop out at $60, which has been recent support and the stock's 200-day moving average.

Macy's is down about 4 percent so far this year.

Disclosure: Dan is long March 65/67.50 call spread.