The Markets Are Open’s proprietary Stock Tracking Analyzer Plus (STAP) has detected a bearish technical pattern in shares of Deckers Outdoor, symbol DECK.
Since June 17th, Deck has been in a constant downtrend (shown by the black line on the graph) creating a ceiling for the stock which is seen as a bearish trend for investors. On August 20th 2010, DECK formed a bearish Head and Shoulders pattern, the ultimate sign that a stock is heading lower. On August 24, 2010, STAP identified a breakthrough of a critical support line (shown by the red line). The stock can now fall the distance from the peak to the support line once it has broken though this trading benchmark. DECK is also trading below its 50-day moving average, a sign of weakness in the stock. We see shares heading into the low $40’s before rallying higher.
“I really like Deckers,” co-CEO of The Markets Are Open Allan Edwards stated, “But when STAP tells me to sell, I don’t look back. That’s why I moved everything into JCP – a much safer bet.”
“Deckers could hit the floor soon.” Andy “Raw” Kibbens, co-CEO of The Markets Are Open said. “It’s not going to be pretty until then.”
STAP analyses hundreds of stocks each day and simply detects pattern movement and unusual trading volumes. STAP currently rates shares of DECK a negative 3 starts out of 10.
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