Looking for a stock that’s springing higher? Check out Decker’s ($DECK). – March 15, 2021
DECK
I want to look at Deckers ( NYSE: DECK ) today. This was a stock that actually one of our newer members, in the forum, asked about. I was gone last week, I didn’t see it. He asked about the stock back here, I think it was on this day but it might have been this day. What he was asking was, this looks like one of your volatility squeezes that you talk about. It’s tightening up here and here, it’s close to the 50-day moving average. What do you think?
Well, that’s what I think. This is like a very, very good squeeze. You can see, once the stock popped out above Friday’s intraday high of 332.32 then this thing really blasted off. Let’s look at the present day. This is the 15th, this was the high back here, 332.32. Once this stock moved above there it hiccuped for just a minute, it’s like prior resistance, resistance again, and then wham, it took off and never looked back, so this was a great trade for us.
I didn’t get in as early as I wanted to but I made the trade. And now as we look at the weekly chart this is where it’s really cool, this is a stock that is just in an uptrend. If you look at the 10-week or the 50-day moving average you see, it is just absolutely supporting this stock right here, right along like that. This is what you want to see a stock do.
This is one of these trades where I would say you could treat this as a short-term trade. You could treat this as a short-term trade but that’s not really what I am thinking about here. This is what I am looking at, I am looking for the stock to do this and then start rallying up. This would be a typical volatility squeeze; breakout, Phase 1 on the breakout. Phase 2 on the pullback, hopefully, not too steep or deep. And then Phase 3 on the move higher.
This is what I am looking for in Deckers ( NYSE: DECK ). This is just the Phase 1; this is just the first part of this move, so we will see how it goes. And by the way, you just want to keep your stop somewhere in here. Don’t be a dope and don’t have a stop. Just make sure you have some kind of risk management in mind in case the stock is wrong because I know I’m not but the stock may be wrong in this one and it might move against you and so you don’t want to be giving away too much money. By the way, I was joking, the stock is never wrong, only the trader, okay?
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