If you tuned into Mad Money Friday night, you would have heard Jim Cramer's game plan for the week's action, which starts today with Stitch Fix, Inc. (SFIX) . The online apparel company disappointed last quarter, but might return to growth this quarter.
SFIX reports after the close Monday. Let's check out the charts and indicators to see if they "fit."
In this daily bar chart of SFIX, below, we can see a potential weak overall picture for prices. Prices rallied from early June to the middle of September, and then gave it all back a little bit more. While prices did recover from late December, they have failed at the underside of the flat 200-day moving average line. Yes the 50-day moving average line has a positive slope, but that indicator could be tested and broken in the weeks ahead.
The daily On-Balance-Volume (OBV) line has been in a decline from the middle of September and tells me that sellers of SFIX have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is rolling over to the downside. Now a take-profits sell signal and perhaps soon a fresh outright-sell signal may emerge if we cross below the zero line again.
In this weekly bar chart of SFIX, below, we do not have a lot of history to work with, but so far it is bearish. Prices reversed lower after a recent test of the 40-week moving average line.
The weekly OBV line has been weak since September, and while the MACD oscillator did muster a cover-shorts buy signal, it is still below the zero line.
In this Point and Figure chart of SFIX, below, we can see a bearish downside price projection of $21. A rally to $29.81 is needed to turn this chart bullish.
Bottom-line strategy: I have no idea on what numbers SFIX will report tonight, but the charts suggest that traders have taken a bearish stance.