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Nearest Resistance: $34

Nearest Support: $32

Catalyst: Bad Earnings, Guidance

Shares of apparel stock Guess ( GES) are down big today on poor earnings numbers, halving their 2012 performance in just a single trading session. The firm posted a small decrease in earnings after the bell yesterday, but it was the colossal miss on guidance that caused shares to gap down so hard in this morning's session.

The price action we're seeing in Guess is an important reminder that a major fundamental shift can derail an otherwise attractive technical setup. (In fact, a technical setup for the stock was outlined yesterday in " 5 Earnings Stocks Poised to Pop."

Shares of Guess broke out above $36 resistance late last week, after shares had been consolidating for weeks. But yesterday's guidance shoved shares to open well below the bottom of that consolidation range.

At this point, it makes sense to stay away from shares until GES finds a more robust support level. Nearest support at $32 is pretty weak.

Guess, one of the highest-yielding retail stocks, was one of 10 Retail Stock Losers of 2011.

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