Crocs Inc. (NASDAQ: CROX): Just a quick follow up on yesterday’s intra-day chart analysis, posted around 3:10 PM. As mentioned in that posting, volume seemed hesitant and that made the apparent breakout suspect to falling back into the handle of the base, which started on April 4th. April 4th was a key day because…
…it formed a shooting star candle (tall upper shadow and small real body near the low side) and proceeded to correct 12.8% from the April 4 high of $28 to the April 11 low of $24.41. Those two intra-day points formed the highs and lows of the handle that CROX has been trying to breakout of over the past few days. As noted in yesterday posting, the handle is imperfect, and now it also is marked with a shooting star-type candle similar to the April 4 shooting star.
What’s it all mean? To me it means that a true breakout has not yet come and CROX could correct for a few days before earnings come out and it makes it’s real move, either proving the shorts right or forcing them to cover at much higher prices, which is the direction I am leaning. We will see. Any small correction would be a second chance for shorts to cover and/or long to buy, but Mr. Market doesn’t hand out second chances like that too often. Cheers!
Like my blog? Want to get automatic email updates at a frequency YOU chose? Enter your email address at the top right of my blog and click “Subscribe.” The service is managed by Squeet.com and is private and SPAM-free.
Already receiving my blog via email? Don’t forget to click the “Promote This Story” link on posts you like (links are in the emails you receive).