Deckers Outdoor Corp. (NASDAQ: DECK)

Deckers Outdoor Corporation engages in the design, manufacture, and marketing of footwear and accessories for outdoor activities and casual lifestyle use for men, women, and children. The company offers luxury footwear, handbags, apparel, and cold weather accessories under the UGG brand name; open and closed-toe outdoor lifestyle footwear, multi-sport shoes, light hiking shoes, amphibious footwear, and rugged outdoor travel shoes under the Teva brand name; action sport footwear under the Sanuk brand name; high-end casual footwear for men and women under the TSUBO brand name; outdoor performance and lifestyle footwear under the Ahnu brand name; and work footwear under the MOZO brand name. The company sells its products primarily to specialty retailers, department stores, outdoor retailers, sporting goods retailers, shoe stores, and online retailers. Deckers Outdoor Corporation also sells its products directly to end-user consumers through its Websites, call centers, retail concept stores, and retail outlet stores, as well as through retailers in the United States. In addition, the company distributes its products through independent distributors and retailers in Europe, Canada, Australia, Asia, and Latin America.

To review VF Corp’s stock, please take a look at the 1-year chart of DECK (Deckers Outdoor Corporation) below with my added notations:

1-year chart of DECK (Deckers Outdoor Corporation)

DECK has continued to trend lower throughout most of the year, which is in contrast to most other stocks that have moved higher. As you can see from the chart, the stock has usually demonstrated important price levels at each increment of $10 (blue). Most recently, DECK has its main level at $50 (navy). Yesterday the stock broke below $50 and should be on its way down to the $40 level.

The Tale of the Tape: DECK has formed common areas of support and/or resistance at each increment of $10, most recently at $40 and $50. DECK’s break of $50 should provide a short opportunity on any rallies back up to $50. A fall to $40 or a break back above $50 would present a long trade.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!

Christian Tharp, CMT