V.F. Corp ( VFC) is known for brands like JanSport, Eastpak, Timberland, Vans and North Face. I reviewed the charts of VFC on February 10 and wrote that "Fundamental analysts are willing to buy a stock in adversity (in a downtrend) but I only want to buy a stock after a base and the start of an uptrend."
The charts of VFC have improved - let's check them out.
In this daily bar chart of VFC, below, I can see some improvement in the indicators that weren't on the charts earlier in the year. Prices have continued to decline and trade below the negatively sloped 50-day moving average line and the 200-day moving average line.
The On-Balance-Volume (OBV) line stopped its decline and turned higher at the end of February telling me that traders turned from aggressive sellers to aggressive buyers.
The 12-day price momentum study shows us higher lows from late September telling me that the pace of the decline has slowed. This is also a bullish divergence when compared to the price action. A bullish divergence can at times successfully foreshadow price reversals and rallies.
In this weekly Japanese candlestick chart of VFC, below, I can see a longer-term decline for the stock. Prices trade below the negatively sloped 40-week moving average line. The most recent candle bar is a "spinning top" pattern and tells us that buyers and sellers of VFC are getting close to a balance.
The weekly OBV line is holding its December low even though prices have made a new low. The MACD oscillator has been moving upwards since October.
In this daily Point and Figure chart of VFC, below, I can see that prices reached and exceeded a downside price target in the $21 area.
In this weekly Point and Figure chart of VFC, below, I can see that prices reached a price target in the $19 area.
Bottom line strategy: Aggressive traders could probe the long side of VFC on a close above $20. Risk a new low close - a close below $18.03.
