Looking for a good breakout trade? Try Crocs, Inc. ($CROX) (December 17, 2019)
CROX
For our Chart of the Day I want to look at Crocs ( NASDAQ: CROX ). This is a stock that I first saw yesterday; we actually looked at it this morning and my brother Gary said, “I didn’t even know there was such a thing as Crocs ( NASDAQ: CROX ) anymore. I thought they were out of business.” Au contraire, they weren’t, they have actually done really well since bottoming down here. It has gone up over 100 percent, so it kind of makes me feel like wearing Crocs ( NASDAQ: CROX ).
I was looking at this stock because it had popped way up here and then trailed off, a big, big gap, a big move. A gap up here probably on earnings; up 16 percent and then it just kind of fell lower before finally regaining its footing at the 50-day moving average. I am looking at this stock as still under buying pressure here, a pull back to the 50 brings out buyers.
Then the stock had been consolidating here and then yesterday when I saw this stock moving up here I was really looking at $37.00 as a line for the stock to breakthrough and that is actually where I bought it. It would be nice to say I got it here or I got it there; I really wasn’t looking at it. I was not looking at Crocs ( NASDAQ: CROX ), I couldn’t care less about it. But then I saw it trickling up above $37.00 so I went long the stock and now the stock is up even more today.
Now this is the thing, it gapped up here in late October and now it’s back to test that level. I do expect some resistance right here because there is huge volume here. The stock is still a bit below the high there of $39.00, so what I am doing is, I am watching to see how this trades. If the stock breaks out above $39.00, it sure looks like it is going to but we don’t know for sure. If it breaks out above $39.00 I will probably be buying more because that is an indication that buyers are still interested in this stock even after the big, what I call a gap and crap.
So I would be buying Crocs ( NASDAQ: CROX ) right here, you have got to give it a little bit of room. I would let it trade all the way down to 36.00 before selling it. If the stock does not rebound off of 36.00 then it is probably going to be mired in this trading range for a while more and I just wouldn’t want to have my money in that. So that’s a trade for you for Crocs ( NASDAQ: CROX ); let’s hope it works out.
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