Another stock that's trading within range of triggering a near-term breakout trade is Deckers Outdoor (DECK), a designer, producer, marketer and brand manager of innovative, high-quality footwear and accessories. This stock has been in a decent uptrend for the last three months, with shares up 14%.
If you look at the chart for Deckers Outdoor, you'll see that this stock has been finding buyers over the last month and change any time it's traded down towards its 50-day moving average. Shares of DECK are now bouncing strongly off its 50-day of $37.23 a share and its quickly moving within range of triggering a near-term breakout trade.
Market players should now look for long-biased trades in DECK if it manages to break out above some near-term overhead resistance levels at $41 to $41.93 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 2.5 million shares. If that breakout triggers soon, then DECK will set up to re-test or possibly take out its next major overhead resistance levels at $44.16 to its 200-day moving average at $44.36 a share. Any high-volume move back above $44.36 will then put $46 to $49.61 into range for shares of DECK.Traders can look to buy DECK off any weakness to anticipate that breakout and simply use a stop that sits close to its 50-day moving average of $37.23 a share. One can also buy off strength once DECK clears those breakout levels with volume and then use a stop that sits just below $40 to $39 a share. This stock is a favorite target of the bears, since its current short interest as a percentage of its float is a whopping 44.8%. If DECK triggers that breakout soon, then this stock could explode higher due to its high short interest.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV