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, 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, 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.
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
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)
- Trading the Ratio of Oil Servicers to Oil
- Trading 3 Black Crows, A Hammer and On Semiconductor
- Premium Earnings 3-26-15
- Crabs and Sharks in the Gold Chart: Update
- Designing a Spring portfolio improvement trade in Home Depot
- Premium Earnings 3-25-15
- First is the Worst, Second is the Best….
- Container Ship Stocks are Sailing Higher
- Premium Earnings 3-24-15
- Want to know where the Nasdaq 100 is going? Watch the SOX