Wanna Trade Like a Wolverine

Well, without adamantium claws coming out of your hands you had better settle for a bit less. Shoe fads come and go. Deckers Outdoors, $DECK, the maker of Uggs was once a market favorite and now has been hammered lower on its last two earnings reports. Croc’s, $CROX, has been a similar story, beaten down recently. Another name though, Wolverine World Wide, $WWW, makes the cool Merrell line, as well as Hush Puppies, and specialty Cat Footwear, Harley-Davidson Footwear and HyTest. But more interesting the stock is on the verge of a breakout. Only question is which way. Are you ready to trade a Wolverine?

This stock is in a bull flag or Symmetrical triangle, whichever set of line you prefer, after a move higher from a base at 37. The target on a breakout higher over 43.25 is a Measured Move higher to 49.50. This set up can always fail and breakdown as well. A move under 42 would trigger a short trade with first support at the previous double top at 40.25. Set an alert in both directions and await the move. Not a fan of the short term trade? Well the Point and Figure chart below tosses out that timeframe issue and gives a price objective of 65 against good support at 40 for a long entry now!

Trust me you are better off without the adamantium claws.

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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.

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