"The Limited Brands (NYSE: LTD), which operates both Victoria's Secret and Bath & Body Works, is a sold big cap play in the retail apparel sector," says Leo Fasccioco.

In his Ticker Tape Digest, the technician focuses on stocks that have broken out of basing patterns. He says, "The stock's 12-week, 'W' base is picture perfect. The breakout on the gap move is ideal."

"The Limited sells women’s apparel, beauty and personal care products and accessories; annual revenues for the company are $8.6 billion.

"Victoria’s Secret operates 1,043 stores in the United States and 322 stores in Canada. The Bath & Body Works operates 1,638 stores in the United States. The firm's retail stores are primarily mall-based. It also sells through its Websites and catalogues.

"LTD's long-term chart shows the stock peaking at 32 in 2006. The stock was then dragged lower during the bear market sinking to 5.90. It has since rallied back strongly. A 12-month performance chart shows the stock appreciating 120%.

"Technically, LTD's stock has broken out from a double-bottom or 'W' base with expanding volume. The move comes as a gap move, which is bullish.

"The base was set up after the stock rallied from 11 to a peak of 20. It then formed the W and rallied back to 20 to set up the 'handle' portion of the base.

"Analysts expect LTD to post a 41% jump in net for the fiscal fourth quarter ended January 31. They expect net of 96 cents a share, up from 68 cents a year ago. The highest estimate on the Street is at 97 cents a share.

"We see good chances for an upside surprise. The past four quarters, LTD topped the consensus estimate by 3 to 5 cents a share. That is impressive.

"Net for the fiscal year ending January 2010 should be up 1% to $1.07 a share from $1.05 a year ago. The key is fiscal 2011 ending in January.

"Analysts project a 25% gain in net to $1.33 a share from $1.07 a year ago. The stock has price-earnings ratio of 15 based on fiscal 2011 projected net.

"Institutional sponsorship is very good. Two key buyers recently. 4-star rated Janus Orion Fund bought 1.2 million shares and 4-star rated BlackRock Basic Value Fund added 2.4 million shares.

"We are targeting LTD for a move to 26 within the next few months. A protective stop can be placed near 18.50. We rates LTD a good intermediate-term play for conservative investors."