Performance lifestyle footwear maker Deckers Outdoor (DECK) has been in an uptrend. Let's check out the charts and indicators to see if they need to rest or can rally further.
In this daily bar chart of DECK, below, I can see that prices have nearly doubled from their May nadir. Really impressive in this weak broad market environment. Prices are trading above the rising 50-day moving average line and above the rising but slower-to-react 200-day moving average line.
The On-Balance-Volume (OBV) line shows an uneven rise from July. The Moving Average Convergence Divergence (MACD) oscillator is turning upwards after a test of the zero line.
In this weekly Japanese candlestick chart of DECK, below, I see a mixed picture at this juncture. Prices are in an uptrend and trade above the rising 40-week moving average line. So far I see no top reversal pattern. The trading volume does show some weakness in recent months and that could be an issue.
The OBV line shows some weakness the past three months and can represent a shift from aggressive buying to aggressive selling. The MACD oscillator has crossed to the downside and is a take profit sell signal.
In this daily Point and Figure chart of DECK, below, I can see that the charting software is counting the X's and O's for a $531 price target.
In this weekly Point and Figure chart of DECK, below, I see a potential downside price target in the $349 area.
Bottom line strategy: Aggressive traders could go long DECK around $425 risking to $408. The round number of $500 is my price target.
