Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Croc’s And Deckers Are Forecasting A Tropical Winter

ByDanske Markets
AuthorGregory W. Harmon
Published 09/12/2012, 03:35 AM
Updated 05/14/2017, 06:45 AM
CROX
-
RSI
-
DECK
-

A few weeks back on August 29th I took a look at Croc’s (CROX) and it still looks good and is in another bull flag. The last three candlesticks have been dojis and Tuesday’s a bearish Spinning Top. But with the Relative Strength Index (RSI) moving up and bullish and the Moving Average Convergence Divergence indicator (MACD) positive, the rest of the signs point higher.

Croc’s (CROX)
CROX
A move over 18.40 sees resistance next near 20. Another darling of the 2010 – 2011, Deckers Outdoor (DECK) looks quite the opposite though. After bouncing from a long 9 month run lower it is falling back again toward the low at 40. This chart is supportive of more downside with the SI trending lower and about to head into bearish territory and the MACD negative and growing.

Deckers Outdoor (DECK)
DECK
Each of these in their own right could be a lucrative trade but the pairs trade set up form the ratio chart below is very compelling. Breaking the descending triangle lower under a ratio of 2.50, with a RSI that is bearish and trending lower and a negative MACD it has a target on the triangle break of 1.50.

Trade: Buy 5 (CROX) and Sell 2 (DECK) with a stop at a ratio of 2.55 looking for a target of 1.50.
With CROX at about 18.25 and DECK near 45 the move could yield as much as $35 to $59 per pair. That buys a lot of shoes!
deck-crox
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Original post

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.