Fossil is Becoming a Fossil
- Posted by Greg Harmon
- on July 11th, 2012
Wikipedia defines a fossil as: the preserved remains or traces of animals, plants, and other organisms from the remote past. Although not at that status yet, the stock of Fossil, $FOSL, is making a compelling case that next generation of robot traders will look at it like a fossil. Let’s look at the evidence starting with the weekly chart below.
There are a lot of negatives in this chart even given the shellacking the stock took following its last earnings report May 8th. Consolidation ensued the following 8 weeks, around the 50% Fibonacci retracement of the upward move. This week it is breaking below that consolidation and should it close there, the next support lower is not until the 42-43 area from 2010. This is also in line with the 76.4% Fibonacci level at 41.26. The 61.8% retracement at 59.97 may provide some pause, but there is not really any prior support there. The Bollinger bands have also opened allowing for a further push lower while the Relative Strength Index (RSI) is heading lower again in bearish territory. The final blow to the company comes when you realize that their product, a watch is not worn by anyone over the age of 40 unless they are in sales and trying to impress somebody. They are truly becoming a fossil.
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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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