Wednesday, March 07, 2007

Update on Deckers Outdoor

A review of the technicals on DECK.

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As mentioned previously, I bought Deckers Outdoor Corporation (NASDAQ: DECK) back on Monday on the break above 68. The actual purchase price was 68.05, and it was done in a different account than my regular trading account.

DECK continues to be the lone bright spot in this sea of turmoil called the markets. I actually feel confident about holding DECK despite the chaos everywhere else. Why? Simply because it is behaving as any stock with a bullish sentiment should be, and has not been affected (too much) by the recent market plunge. If anything, it actually seems to be ignoring the movements of SPY. DECK shows all the classic signs of a stock on a multi-month momo run-up - periodic new highs and higher lows, RSI is persistently oversold, MACD is turning up and staying up. DECK has also carved out a channel which will serve as an indication of the resiliency and persistency of this trend.
Both the 5d and the daily chart point to a support level existing @68. So my stop will be moved to just under that level. Wouldn't it be nice if I could ride this bucking bronco of an uptrend for the next week or two ??

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