You Need Tough Shoes When Marching Out of a Bear Flag
- Posted by Greg Harmon
- on September 15th, 2011
The markets have moved off of the lows in their channels or bear flags and are heading to the top of the range. That is the easy part of the move higher. But to climb out of the flag and into clear air higher starting a new uptrend will take some hard work and strong footholds. The terrain could be rocky, requiring some tough footwear to climb higher. Looking at 3 the charts of 3 tough footwear companies Crocs, $CROX, Deckers Outdoors, $DECK and Wolverine World Wide, $WWW, shows that the prep work is being done now.
Crocs, $CROX, is followed by many and breaking higher out of a bull flag. The Relative Strength Index (RSI) is rising and the Moving Average Convergence Divergence (MACD) indicator has crossed positive. If it can get higher over 29 then it should resume the march to a new high.
Deckers Outdoor, $DECK
Deckers Outdoor, $DECK, is walking higher off of a bottom and through the previous price channel between 77.50 and 94.75 (or maybe 97.5). The RSI and MACD are rising here also supporting more upside. Above resistance at 100 it can try to previous high near 106 again.
Wolverine World Wide, $WWW
Similar to the other two, this looks good to run higher over the 100 day Simple Moving Average (SMA) at 37.85 toward the resistance area at 40.
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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.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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