It May Be Time to Buy Time

• Posted by Greg Harmon
• on January 14th, 2013

Despite the fact that everyone under 50 uses their mobile phone as kind of a pocket watch, the stocks of two companies that sell watches, Fossil, $FOSL, and Movado, $MOV, are looking attractive technically and it may be time to buy them.

Fossil, $FOSL

Fossil, $FOSL, gapped lower after their May earnings report and was left for dead. The next report in August popped the stock a bit but since then it traded in a in a tight range between 82 and 95, driven by the Fibonacci Arcs until recently. Trending higher since November it has now retraced 50% of the down move. Looking left on the chart shows that the previous price history in this area between 101.50 and 114 is virtually non-existent. With the Relative Strength Index (RSI) sneaking into technically overbought territory it may consolidate at the level for a bit but set an alarm to buy it on a move over 102.

Movado, $MOV

Movado, $MOV, had a couple of strong moves higher followed by long consolidation. The first was February to August and the second August to December. It is having more trouble moving higher this time but continues to find support at the 50% retracement near 29. Now rising with a RSI that is bullish and a MACD that is positive and growing it may be time to own it. Look for a new high, over 35.49 as a signal to get long.

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