Bundle Up, Deckers Will Be Outdoors for a While

DECK shares will likely need a long period of consolidation before a new bull phase can get underway.
Stocks quotes in this article: DECK

Deckers Outdoor (DECK) trended lower for all of 2015, chart below, and 2016 is continuing in the same vein.

Until today's weakness, DECK was trying to hold above the 50-day moving average with an uptick in the On-Balance-Volume (OBV) line, but that modest improvement was dashed this morning, with DECK off sharply.

The overall technical condition of DECK was, and is, bearish, with the trend of the 50-day and 200-day moving averages pointed down. While the OBV line has picked up in January, the overall direction has been lower for months. Last, there are no bullish divergences between the price action and the momentum study.

This longer-term weekly chart, above, shows that DECK has wiped out nearly all of its 2013 and 2014 gains. The low of 2012 around $30 is the next area of chart support. After this kind of decline, DECK shares will likely need a long period of consolidation before a new bull phase can get underway. Traders should look for "greener pastures" elsewhere.

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TAGS: Investing | U.S. Equity | Consumer Discretionary

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