CROX gapped down on earnings Thursday morning and after a lot of offsets, it finally started to look interesting as price and the down sloping ema started to come together. It carved out a NR7, mini gravestone doji at the base of the ORL, so I decided to take a dummy short. I took a partial at the round $50.00 thinking it might catch a bid at this level. However, it continued lower and couldn't even manage to close at $50.00 on the consolidation., before heading lower in the last hour. The Fibonacci extension from the previous day high to the ORL did not exceed 25%, but it didn't have to because there was plenty of money to be made between the ORL and 25% because of the size of the gap.Friday, November 02, 2007
Dummy Gapper Trade of the Day - Crocs, Inc. (Public, NASDAQ:CROX)
CROX gapped down on earnings Thursday morning and after a lot of offsets, it finally started to look interesting as price and the down sloping ema started to come together. It carved out a NR7, mini gravestone doji at the base of the ORL, so I decided to take a dummy short. I took a partial at the round $50.00 thinking it might catch a bid at this level. However, it continued lower and couldn't even manage to close at $50.00 on the consolidation., before heading lower in the last hour. The Fibonacci extension from the previous day high to the ORL did not exceed 25%, but it didn't have to because there was plenty of money to be made between the ORL and 25% because of the size of the gap.
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3 comments:
Where would you expect CROX to find a bottom? 44.10, the capitulation day in August? Do you think the 200dma holds (it has closed just above it friday)? if not, where would you think buying pressure would step in and support this?
David,
I think CROX is close to a near term bottom here. Friday it extended to the 38% Fib extension of Thursday's gap down and bounced. The base is now in the area of $50.00 which was tested intraday on both Thursday and Friday. Also it has retraced almost 50% from the all time low to last week's high. I'll go over the chart in more detail tonight on the blog.
Jamie,
I look forward to you going over the chart in more detail. I hope you can explain what you mean by the base being at $50 if we are trading under it. i always undertsood the base meaning a place of support. The total correction has been 42% top to bottom. Is there some significancne to the 50% number you cite and would you think we would need to hit closer to 50% first (a 20% drop from Friday's closing price!). Thanks again for responding.
David
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