As they say, the trend is your friend. We are witnessing a very strong move down on Deckers, despite it's excellent growth in UGG and Hoka, sales are slowing as inventory has failed to meet demands. This a good problem as the company can fix their supply and demand equilibrium, the management are known for under promising and over delivering. I see Deckers as one of the best run trainer companies out there. They have no debt, a massive cash pile and one of the best management teams in the industry.
From a technical perspective, we have a confirmed death cross as the price has fallen below key daily moving averages. I am expecting a bounce to occur between $100-115, so I will not be entering until I see the reaction to key support areas. I expect support at the 200 week moving average and the golden pocket fib retracement. Historically this has proven to be a good time to enter the stock. As long Hoka and UGG continue to remain popular with consumers, and as long as we don't have a recession, this makes it a compelling story.
As tech continues to show weakness, I think Deckers offers a very attractive buy over the coming weeks. Keep an eye on this, especially if you're a long term investor looking to diversify your portfolio.
Not financial advice, do what's best for you.
From a technical perspective, we have a confirmed death cross as the price has fallen below key daily moving averages. I am expecting a bounce to occur between $100-115, so I will not be entering until I see the reaction to key support areas. I expect support at the 200 week moving average and the golden pocket fib retracement. Historically this has proven to be a good time to enter the stock. As long Hoka and UGG continue to remain popular with consumers, and as long as we don't have a recession, this makes it a compelling story.
As tech continues to show weakness, I think Deckers offers a very attractive buy over the coming weeks. Keep an eye on this, especially if you're a long term investor looking to diversify your portfolio.
Not financial advice, do what's best for you.
Trade active
As mentioned in my original trade idea, I expected a bounce to occur at the $100-115 are. I started a small position at $114, so far we are getting a strong bounce, along with the equity market. If the trade goes against me, I will exit at break even (stop loss).
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.