Are $CROX a shoe-in for your portfolio? – June 11, 2024
This is Scott at StockMarketMentor.com and your Chart of the Day. I know that there’s a ton of hype around Birkenstock ( NYSE: BIRK ), especially the Birkenstock ( NYSE: BIRK ) stock, as it consolidates right now near the all-time highs, but this is a bit extended from the moving averages.
You can see they had a nice earnings report recently. It popped up, held that gap, climbed, and made some new highs. But I’ll be honest, I’ve tried ‘Birks’ before, they take a little time to break in.
I find Crocs ( NASDAQ: CROX ) are not only much more comfortable but also, in my opinion, a better-looking chart here because we have clear support here near these moving averages, and Crocs ( NASDAQ: CROX ) aren’t nearly as extended as Birkenstock’s ( NYSE: BIRK ) right now.
While we’re in the shoe game, I’ve got to pick one of the two charts and I think this ( NASDAQ: CROX ) is the better-looking one. And so I would definitely keep an eye on Crocs ( NASDAQ: CROX ) for an opportunity to see this stock break out and get back into some of the highs that it hasn’t gotten to since back here in the hype of the market in 2021.
We’re coming back to some pretty frothy levels, but it took a long time to get there. There are a lot of ups, a lot of downs, a lot of market digestion. And so, I think if Crocs ( NASDAQ: CROX ) can get above this short-term level of resistance right around 158.20, then we have a chance to break into that high from back here in 2021, to around 185.00.
That would be a pretty good short-term swing target if you’re looking for something to trade with momentum. Now of course, if Crocs ( NASDAQ: CROX ) doesn’t break above that level you’re not going to want to buy the stock. The setup is really trading this momentum, getting into this new high for 2024, and then retesting some of the highs from up here in 2021.
I don’t know if it will go as vertical as that, but that’s what we’re looking for eventually; a retest of the highs from 2021, with a break of around 158.20, on volume. Keep in mind, they have earnings coming up, but not until the middle of July. There’s lots of time for this thing to ebb and flow, and ideally, let this trade play out.
So enjoy your Birkenstock’s ( NYSE: BIRK ) ladies, I’ll be wearing Crocs ( NASDAQ: CROX ) all summer long.
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