Wanna Trade Like a Wolverine
- Posted by Greg Harmon
- on May 16th, 2012
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.
Why Having Wolverine’s Claws Would Suck — powered by Cracked.com
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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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