Is Deckers Out of the Woods Yet?

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Deckers Outdoors Corp. has lost 67% since its $120 peak in November 2011.  Technical analysis suggests DECK is trying to stage a reversal but may not be out of the bears grasp just yet.

A weekly chart shows the nasty down-trend from late November 2011 through all of 2012.  MACD convergence suggest the downward momentum might be letting up, coupled with the breakout from its downtrend, there is a case for a reversal in the near term.  Significant overhead resistance lies at $42-$44 range.

Daily view shows resistance at $42.50 with an ascending triangle formation.  A break to the upside could give price near term momentum to test the 200 SMA on the weekly at $57. However a breakdown of this pattern could lead to more downside pain.  Earnings are on February 19, 2013.

See the original article HERE. Head over to The Smarter Investor for more actionable technical analysis,or mirror our trades on Marketfy.com HERE.

Posted In: TechnicalsTrading Ideas
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