FOSL - the case against funnymentals
FOSL has a decent track record. They continued this record by beating earnings this quarter.
Good year-over-year earnings growth, solid EPS, low debt ratio, good cash. If the market was getting crushed today, the 12 point drop in pre-market would have made *some* sense. It's not, though. Market analysts say that the company's fundamentals, while good, are not QUITE as good as the rest of the sector and the stock is suffering for it.
We're not funnymentalists. Let's look to the gods of the charts to find out why they hath forsaken us.
10 minutes and lots of colorful lines later, we see our major price action points and a simple answer: head and shoulders, baby. The only thing of real interest here is that 107.35 point. It's below the neckline, but every time the H&S drops out, this fella gets knocked out of the park the next day. It's a major support level formed over the last year and an important buy point for algorithms. Once the H&S is complete, algos and retail buyers struggle to keep the stock up at 107.35 but we know that it can't stay.
They manage to drive the price back up to the neckline to the penny and then get dumped like a junior on prom night.
Good year-over-year earnings growth, solid EPS, low debt ratio, good cash. If the market was getting crushed today, the 12 point drop in pre-market would have made *some* sense. It's not, though. Market analysts say that the company's fundamentals, while good, are not QUITE as good as the rest of the sector and the stock is suffering for it.
We're not funnymentalists. Let's look to the gods of the charts to find out why they hath forsaken us.
10 minutes and lots of colorful lines later, we see our major price action points and a simple answer: head and shoulders, baby. The only thing of real interest here is that 107.35 point. It's below the neckline, but every time the H&S drops out, this fella gets knocked out of the park the next day. It's a major support level formed over the last year and an important buy point for algorithms. Once the H&S is complete, algos and retail buyers struggle to keep the stock up at 107.35 but we know that it can't stay.
They manage to drive the price back up to the neckline to the penny and then get dumped like a junior on prom night.
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