Why Is Myer (MYR) Share Price Falling Today?

By Jason McIntosh | 13 January 2025

As of midday, Myer (ASX: MYR) has experienced a sharp fall of 17%, trading at 95 cents. This drop marks a significant shift for the stock, which has been in an uptrend since mid-June, staying consistently above its 50- and 100-day moving averages.

What’s behind this sudden fall, and what does it mean for investors?

Let’s explore the key factors driving Myer’s price movement.

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The Fall: What’s Happening to Myer?
Myer’s falling share price comes amid a broader set of challenges for the company. In its recent trading update, Myer revealed:

• Total sales have decreased by 0.8% year-on-year, influenced by store closures and cautious consumer spending due to cost-of-living pressures.
• Operating gross profit dropped by $15 million, with EBIT down $16 million, reflecting the impact of higher costs and delays in realizing efficiencies from the new National Distribution Centre.
• Broader retail sector challenges, highlighted by Premier Investments’ update, are also weighing on sentiment.

Investors appear to be reacting to these pressures, along with Myer’s ongoing need to navigate macroeconomic uncertainties.

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The Technical Perspective: A Shift Below Key Moving Averages
For months, Myer’s stock price remained above its 50- and 100-day moving averages, signaling strength and consistent upward momentum. However, today’s sharp fall has broken below these levels — a potential structural change for the stock.

Why does this matter?
Moving averages act as key indicators of trend direction. When prices fall below these averages, it can signal a reversal or weakening trend. For traders and investors, this is a critical moment to assess risk and ensure they have an appropriate exit strategy (if necessary).

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The Risk of Buying the Dip
While “buying the dip” is a popular strategy, it carries added risk when a stock trades below its moving averages. A dip in this context may not be a temporary pullback but rather the start of a larger downtrend.

For a stock like Myer, staying disciplined and waiting for it to regain its moving averages — or show signs of renewed strength— can help reduce the likelihood of being caught in a prolonged decline.

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Looking Ahead: Opportunities and Risks
As today’s drop shows, even established companies are vulnerable to sudden shifts in market conditions.

The key now is to monitor how Myer behaves below its moving averages. If it shows signs of recovery and regains those levels, it may signal the resumption of an uptrend. Until then, disciplined risk management remains critical.

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How a Rules-based Strategy Could Help
Motion Trader tracks thousands of stocks, including those in the ASX 300 and beyond, using a systematic rules-based approach that removes emotion and guesswork. By focusing on medium-term trends and employing clear entry and exit signals, our strategy aims to maximise gains while keeping losses relatively small.

If you’re ready to take control of your investing with a systematic approach, explore how Motion Trader could help you navigate the markets with confidence.

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Want to Learn More About Managing Risk in the Stock Market?

If you’d like to learn more about how to protect your capital and identify profitable trends, download our free Active Investor Guide below. It’s packed with actionable insights to help you take your investing to the next level.

By staying informed and following a structured investing process, you can make better decisions and build confidence in your trading journey.

Jason McIntosh | Founder, Motion Trader

Jason’s professional trading career began over 3 decades ago. He’s a founder of two stock advisory firms, a listed funds management business, and has helped thousands of investors navigate the stock market. Click here to read Jason’s incredible story of, at age 20, sitting alongside some of the world’s greatest traders (and the life changing experience that came with that).