Canada Goose Holdings Inc. (GOOS) was reviewed one month ago, and I wrote, "GOOS could make a high level consolidation pattern in the $31-$35 area before heading higher. This consolidation pattern, should it occur, would be an opportunity to probe the long side of GOOS." Prices did consolidate (trade sideways) in January before trading higher. GOOS has more than doubled from its lows so this is a good opportunity to see if we need to change any strategies or stops.
In this daily bar chart of GOOS, below, we can see that the stock is above the rising 50-day moving average line -- maybe too far above. The 200-day line is pointed up but of course we have limited history. The On-Balance-Volume (OBV) line has been climbing since August and so far confirms the price advance.
In the bottom panel of this chart is the 12-day momentum study, which shows a bearish divergence from January into February. Momentum makes a lower high but prices make a higher high. A five week divergence is not a major sell signal but it does show that momentum has slowed and this can foreshadow price weakness ahead.
In this Point and Figure chart of GOOS, below, we can see the uptrend and a possible price target of $48.14. Prices are still in and uptrend but a decline to $34.61 could begin to weaken this chart.
Bottom line: The uptrend in GOOS could continue but we have seen momentum slow recently. Traders long GOOS should raise stop protection to a close below $34.