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.