I always feel a little like a chump doing these charts because I’m no expert in technical analysis. But it’s fun to see whether or not I am right about my predictions! Anyways, here is the chart for Fossil (FOSL), the “the “global design, marketing and distribution company that specializes in consumer fashion accessories.”
The chart shows a bearish symmetrical continuation triangle. The slow stochastic indicator appears to have crossed over to the downside, the stock price is near the top of its trend channel, and the retail sector is a weak one in general now that Americans are starting to hold back on spending.
I feel there is a better than average chance of profiting on this stock by shorting it or buying puts at least 3 months out. This stock is most likely going to retest $30 and then maybe $25, both areas of strong support.
Nevertheless, Fossil was recently upgraded to a “Buy” by Piper Jaffray. Fossil claims that global growth and raising the prices on its watches are going to contribute to higher earnings. We’ll soon see about that when it reports on the 19th.
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