Here’s your trade in $CROX – April 24, 2023
This is Dan Fitzpatrick with Fitz in Five or your Chart of the Day, whatever you want to call it. I want to look at Crocs ( NASDAQ: CROX ) today. Now, they report earnings in a few days, it’s Thursday after the close, so we’ve got 3 more trading days for this stock to move. I put us in this stock as an active trade back here on the 30th, so it’s been a few weeks since the stock first started jumping up here on heavier-than-average volume, and we were able to hold through this pullback.
I had set the stop just a little bit below where this stock ultimately went down. It could have been shaken out, we weren’t this time around, but I happened to just set the stop just a little bit below here. We stayed in, stayed in through the pullback here, and then rode this thing up.
Now, we are up around 21 percent on the trade; really big volume here, which I like, it makes me pay extra attention to tomorrow, and this is why: This was up, like, 10 of 11 days, something like that, yeah, 10 of 11 days this is up. We get this kind of volume, I wouldn’t call it a crescendo so to speak, but you can see, it is noticeably higher than the average volume over the last 20 days.
And so it is possible this could even be kind of a climax high. And I mean this in a very, very short-term sense. You can see the take-off here, it continues to go on the 15-minute chart, it’s just running in a really nice direction and in a really nice slope. But it does get my attention that it is so high-volume-wise, and up almost 3 percent after a big run here.
So I would suggest being really careful with this. If you are a short-term guy then you might want to do this to protect your gains. The low here is 146.68, so if you were even to put your stop just a little bit below today’s low, that will keep you in the stock until and unless the stock reverses, completely, the prior day’s gains.
In other words, if you look at what’s been happening here, the stock has repeatedly been making higher intraday lows. So each day the stock has not come down even on the worst print below the prior day, that is certainly what we have here. So the thing that you would be doing is, you would be staying in this stock until and unless the stock did that.
You stay in it and you ride that think higher and higher, until, at least the way I would trade it, the way I am going to trade it, is to hold until before earnings and then I will sell half. I will sell half of my position and hold the rest over earnings and we will see what happens. As I look at this chart, this looks like a big old multi-year cup and handle with a low handle. I could definitely make the case for this thing coming up to 180.00.
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