Columbia Sportswear Co. (COLM) has been trading sideways since June around the $90 level or area. Sometimes above and sometimes below. Beneath the surface it looks like the technical structure is weakening but we can see a larger sideways period of trading for COLM back in 2016 and 2017 that resulted in a big rally.
Let's look closer before passing judgment.
In this daily bar chart of COLM, below, we can see a rally from $70 to $95 and then the sideways trend. Prices cross above and below the 50-day moving average line several times.
In October and November the rising 200-day line is tested successfully. Prices could be at or near an apex with COLM on the 50-day line and the rising 200-day line is just three dollars below the market.
The volume pattern does not seem to reveal much but the daily On-Balance-Volume (OBV) line shows a decline from the middle of June, suggesting that sellers of COLM have been slightly more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has been below and above the zero line since August and is currently right on the line.
In this weekly bar chart of COLM, below, we can see that prices are still above the rising 40-week moving average line.
The weekly OBV line shows a decline the past two to three months and the MACD oscillator has been in a take profits sell mode since July.
In this Point and Figure chart, below, we can see a downside price target of $79.36 being projected.
If we look at the price action from June (look for the 6 on the chart) we can see more price activity (x's and o's) in the upper half of the area suggesting we are seeing distribution (selling).
A decline to $85.59 will weaken the chart.
Bottom line strategy: COLM could break out to the upside and a rally and close above $95 would be the signal, but the Point and Figure chart argues for a break to the downside. Traders should be prepared to make money in either direction.