NFTRH+; A Retailer in Short and Long-term Setups

I came across the chart of DECK (Deckers) and found it technically interesting in the near and longer-term. According to Yahoo Finance it’s got 280M in cash and only 32.5M in debt. Price/sales seems reasonable at 1.30 and forward PE is 15.17.

Aside from that stuff, my perception of their brands is one of quality and trendiness. Thing 1 is something I am always interested in and Thing 2 is something I am almost never interested in. But then again, this post is written by a cranky oddball.

The larger sized daily chart (click to expand) illustrates a Cup & Handle pattern that has broken the Handle but then whipsawed a couple times in big up and down spikes. It made a new high yesterday to close above the rim of the Cup, which is positive. But in the event of another spike down a miser interested in this stock might try to grab another test of the SMA 50 in the 66 to 68 area. It may not come down that far again, but it never hurts to have watch items.


The weekly chart shows that the early 2016 low was tested in early 2017. [side note: Is this some sort of post holiday structurally weak period for the retailer? It pulled a big tank job in January of 2015 as well. So the question of that risk is in play and might demand the research of anyone interested in more than a technical trade.] The price has since made a higher high and a higher low and on Wednesday was stopped right at a trend line as it pauses to reflect on its bullish status. A breakout here could eventually send the stock much higher, with a measurement to about 99.


The monthly chart is in essence a massive and volatile Symmetrical Triangle that has been in play since the market recovery in 2009. Thick resistance is noted by the red shaded area and also the top of the triangle is an area that traders (and their machines) would be watching as resistance. The stock has touched the upper and lower Triangle lines enough times to qualify for a breakout, if that is in the cards. In other words, it’s spent enough time building the thing.


We noted a recent bullish move in the Retail sector (XRT) but also remember well that I got faked out by a previous move several weeks ago. But in light of recent strength, wanted to put this one on my own radar and share it with you for further research if interested.

Okay, now to get ready for Turkey, political discussions and the guilt that only a renewed exercise regimen will be able to address. Happy Thanksgiving.

A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.