The bankruptcy of Sears Holdings could be good news for other retailers as holiday shopping picks up.

One company likely to benefit is Dillards (NYSE: DDS), a department store that targets the same shoppers that once found almost everything they needed at Sears.

DDS is on a momentum buy signal with the stochastic indicator (shown in the circle at the bottom of the chart) turning bullish as price appears to have found a bottom.

A quick move to $80 appears likely where the stock will encounter resistance.

This is a potential gain of almost 10%, a gain that could be boosted with short-term call options on DDS.

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