Fossil is Becoming a Fossil

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.

Fossil, $FOSL

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.

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