This technical level is keeping Deckers (DECK) under wraps. Watch for the breakout. (August 21, ..
Discussed in this article: Deckers Outdoor Corporation ( $DECK )
Let’s look at Deckers ( NASDAQ:DECK ). I guess you could you could say this is a cup and handle, no cup is perfect.
The stock had been trading lower here, let’s look at the volume, it had been trading here on lower than average volume, that’s what you want to see in the handle of what you think is a cup and handle. You want to see just kind of general consolidation, light volume, you don’t want to see a lot of volume where you’re thinking that there’s still some real selling going on.
We saw a lot of selling back here in this big volume day here, and then a few days here as well. You can see all the big spiky days have been red ones, they’ve been red high-volume days, distribution days, so now we’re at a point where I would say $60.00 is definitive resistance.
Now you look today, the stock was up at 61.50 and it was not able to hold that level. The market is weak; frankly I think that has a lot to do with it. I’m not really buying much of anything, but here’s what I want to do; just keep an eye on Deckers ( NASDAQ:DECK ).
If the stock does start closing above $60.00 you’re probably going to see the start of the next leg higher, because this has been consolidating for quite a while. But don’t rush into it, because until resistance is broken, guess what? It’s confirmed. And so we have yet another day today where this resistance line has been confirmed.
So you don’t want to be there early, we can draw a line here and show the triangle, a little flat triangle, but you want to wait for the break out because the longer a stock drifts into the end or the apex of a triangle the more likely it is to actually trickle out the other end and fall lower just because we haven’t got the break out that we were waiting for. So right now we’re still waiting. Wait for a close above 60.00 and then I think you can the trigger on Deckers ( NASDAQ:DECK ).