Since the stock Fossil (FOSL) hit a high of $134.99 on 11/6/2013 it has seen better times. Fossil from that time has dropped down to a low of $5.50 on 11/8/2017. (FULL DISCLOSURE: I CURRENTLY OWN AND AM LONG FOSL AS OF 1/2/2018) Fossil has started showing signs of life and based upon my trading style I believe it is in store for a nice run up in the next 1-2 years. Let’s look at the charts:
Has the bottom been reached in Fossil (FOSL)?
This is what my current chart looks like with Fossil (FOSL). The teal boxes are the gaps that have not been filled. The gray box is the 50% retracement from the pivot point high down to the low. You can see there are several gaps to fill as well as a ton of room to run before price hits the 50% retracement level. I have my exit at $58.00 which is a little below the 50% retracement level. Obviously the trend has been pretty much straight down and is still well positioned in Andrew’s Pitchfork.
Closer Look – Better Times Ahead?
Here you can see that price has firmly broke above the mid-line of Andrew’s Pitchfork. This is the first time Fossil (FOSL) has done this since price crossed below the mid-line of Andrew’s Pitchfork. I consider this one of the first bullish signs this stock has had in a couple of years.
Short term resistance upcoming
As you can see from the magenta line there is some short term resistance ahead. Price could very easily hit it and then turn back down to AP’s mid-line or price could plow right through it.
Fibonacci Extensions Included
Here you can see in Fossil’s (FOSL) chart the fib extension levels. The last one it past was the 423% and that is the last one on the chart because the 685% is a negative dollar amount.
Conclusion
If you were thinking about getting long Fossil (FOSL) then I think it is a good long play. Like I said earlier, my exit is at $58.00 so I believe there is a ton of room for Fossil to go up. Even if price only goes up to the top of the first gap this year then that would be around $11.50 and with price currently at $8.65 that is a good return. If price does go to around $6.00 again then I will add to my position even more. If you want to be even safer with your entry then you can wait until price breaks out of the top line of Andrew’s Pitchfork but I don’t think that will happen anytime soon.
