Fossil (FOSL) yesterday reported massive earnings the stock skyrocketed up today. The good news is that there is still plenty of room for it left to go and for you to get in. In this post on 1/4/18 I wrote that the bottom is close to being in: https://evancarthey.com/fossil-fosl-may-be-coming-back-from-extinction/. At the current time of that writing the price was $8.65. My current exit is at $58.00. Let’s look at the charts.
GAP, GAP, GAP, GAP, GAP!
Today Fossil gapped up to fill a previous gap and also closed just north of Andrew’s Pitchfork that it had been in for a long time. The gap it filled acted as the resistance for today. Look at all of those gaps above it! I love gaps because they act like a magnet for price and although I don’t trade off of them normally I love seeing them in the direction I am going. All of the blue boxes are gaps that need to be filled. Here in this post that I wrote about my reasoning of why I love gaps: https://evancarthey.com/goldman-sachs-predicts-gbp-drop-another-25-true-false/. The grey box is the 38-50% Fib retracement and my exit is at $58.00 which is just shy of the 50% Fib retracement. That is why I fill there is still plenty of time for anyone else to get long.
One Concerning Issue
Usually when a stock goes up 70%+ in one day (simply amazing) there isn’t much to worry about in the short term. Well just as much as I love gaps it left a big one behind. Will price come down and fill that gap before heading back up or will it just shoot back up? I don’t know but if price does come down and fill the gap then I will have my trigger finger ready to buy more FOSL.
Conclusion
I am long Fossil (FOSL) with my exit at $58.00. I think that this stock is extremely undervalued and has a ton of room to the upside in the next 1-2 years. In my opinion this is a super strong buy. The way I trade I consider this a free trade. Even if price goes down to $0.01 and doesn’t go out of business then when the 50% Fib retracement is hit you’ll be in huge profits. These are the perfect types of trades I look for. Add in that there are plenty of gaps to fill to the upside and I love it. If price does come back and fill the gap it made today then I will buy more around $9.00.
